New Delhi, Aug 10:
Sentiments turned bearish on the eve of the release of key economic data points, leading to a barometer index of the Indian equity markets closing 135 points down on Monday.
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) lost around 135 points or 0.50 percent.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also ended the day’s trade in the red. It edged lower by 39 points or 0.46 percent at 8,525.60 points.
The S&P BSE Sensex, which opened at 28,250.78 points, closed at 28,101.72 points — down 134.67 points or 0.48 percent from the previous day’s close at 28,236.39 points.
The Sensex touched a high of 28,417.59 points and a low of 28,017.85 points in the intra-day trade.
Analysts observed that the equity markets had made initial gains on the back of data which showed a slowdown in the US jobs growth in July. This data is expected to deter the US Federal Reserve from raising interest rates in September or to wait until December.
With higher interest rates in the US, the FPIs (Foreign Portfolio Investors) are expected to be led away from emerging markets such as India.
“The jobs data that was released late on August 7 played on investors’ sentiments’ initially. The US non-farm payroll data is key in deciding whether the Fed will raise rates or not in September,” Anand James, co-head, technical research desk, Geojit BNP Paribas, told IANS.
The US economy added 215,000 new jobs last month. In June the employment figures went up by 231,000, while during May the figure stood at 260,000.
However, the initial gains were soon wiped-out, as investors became anxious over the upcoming key economic data points of Consumer Price Inflation (CPI) and Index of Industrial Production (IIP).
“These data points, while being volatile, are also significant as they will show the inflation and industrial activity in the light of good monsoon,” said Devendra Nevgi, chief executive of ZyFin Advisors.
Nevgi added that the markets were upset over the logjam in parliament. The monsoon session of the parliament ends on August 13 with fate of key legislations like the GST (goods and services) or the Land bill hanging in the balance.
“There is still hope that the government will find a way to pass and implement the GST bill on time. However, the continuing logjam has provoked bearish sentiments,” Nevgi said.
“The signals that are coming — like a proposed joint special session to get the bill passed — are very encouraging.”
Sector-wise, all 12 sub-indices of the S&P BSE except the realty index ended in the red.
The S&P BSE capital goods index decreased by 118.87 points, followed by consumer durables index which receded by 104.76 points, oil and gas index declined by 93.69 points, metal index edged-lower by 90 points and fast moving consumer goods (FMCG) index fell by 53.61 points.
However, the S&P BSE realty index edged higher by 11.87 points.
Major Sensex gainers during Monday’s trade were BHEL, up 2.01 percent at Rs.271.15; Hero MotoCorp, up 1.67 percent at Rs.2,704.85; Maruti Suzuki, up 1.03 percent at Rs.4,497.70; Gail, up 0.79 percent at Rs.344.40; and Tata Consultancy Services (TCS), up 0.75 percent at Rs.2,570.80.
The major Sensex losers were: ONGC, down 2.55 percent at Rs.275.10; Mahindra and Mahindra (M&M), down 1.96 percent at Rs.1,360.45; NTPC, down 1.91 percent at Rs.131.30; Tata Motors, down 1.71 percent at Rs.385.85; and Coal India, down 1.59 percent at Rs.408.95.
Among the Asian markets, Japan’s Nikkei was up 0.41 percent and China’s Shanghai Composite Index rose by 4.93 percent. However, Hong Kong’s Hang Seng slipped by 0.13 percent.
In Europe, the London FTSE 100 index slipped by 0.77 percent but Germany’s DAX Index and French CAC 40 gained 0.41 percent and 0.48 percent, respectively, at the closing bell here. (IANS)