Negative global cues subdue indices; metal stocks down

Mumbai : Negative global cues along with inflationary worries and mild profit bookings subdued India’s key stock indices — S&P BSE Sensex and NSE Nifty50 — during the mid-afternoon trade session on Thursday.

Initially, the two indices opened on a positive note.

Among sectors, all of them traded in the red with loss leaders being Metals, Capital Goods, Auto, IT and Healthcare.

At 2.30 p.m., the S&P BSE Sensex of the BSE traded at 59,665.68 points, down 342.65 points or 0.57 per cent.

It opened at 60,179.93 points from the previous close of 60,008.33 points.

Similarly, the broader 50-scrip Nifty at National Stock Exchange (NSE) traded lower.

It traded at the 17,778.45 points, down 120.80 points or 0.67 per cent during the trade session.

“Global markets are flat to mildly negative as traders weighed risks to the global recovery from the prospect of faster monetary-policy tightening to tackle inflation,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

“Nifty has yet not breached 17,613 on the downside and hence large bearish moves can be ruled out for now.”

Likhita Chepa, Senior Research Analyst, CapitalVia Global Research, said: “Domestic sentiment is impacted by the negative cues from other Asian markets coupled with inflationary pressures partially driven by surging energy prices.

“Our research suggests that if the 58,900-59,300 levels may act as an important support in the market. If the market sustained above 58,900, we can expect it to trade in the range of 58,900-60,200.”