Investor-anxiety over the ongoing quarterly results season subdued Indian equity markets leading to a barometer index trading marginally in the red during the post-noon session on Monday.
Initially, both the Indian bellwether indices opened in the green on the back of positive Chinese markets. However, both indices soon ceded their gains, as investors were spooked regarding the uncertainty over the second quarter results.
Notwithstanding the downward trend, hopes of healthy macro data points on industry output and inflation later in the day somewhat arrested the fall.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading marginally in the negative territory during the post-noon session. It slipped by 8.60 points or 0.11 percent at 8,181.10 points.
The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE), which opened at 27,242.60 points, was trading at 27,033.63 points (at 1.45 p.m.) -- 45.88 points or 0.17 percent down from its previous close at 27,079.51 points.
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The Sensex has so far touched a high of 27,305.04 points and a low of 27,005.84 points in the intra-day trade.
The barometer index had closed with gains of 233.70 points or 0.87 percent on October 9, the last trading day.
Analysts pointed out that the markets were trading marginally in the red due to the uncertainty over the second quarterly results, which might be below expectations due to currency fluctuation and slowing demand scenario.
"Positive Chinese indices gave a steady opening to the markets here which made early gains. However, the markets soon receded on the back of investors' anxiety over the quarterly results and rise in the oil prices which are expected to sustain," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
"Apart from stock-specific action, the markets have no clear trigger on the possible government reforms. This has been a dampener. However, expectations of healthy macro numbers have kept the markets steady and not allowing them to go in a free fall."
Nitasha Shankar, vice president, research with YES Securities, told IANS: "Metal stocks continue to dominate in trade, while Tech and FMCG stocks are under pressure pulling down the Index. Broader markets are trading with marginal gains.
Sector-wise, information technology (IT), technology, entertainment and media (Teck) and fast moving consumer goods (FMCG) came under intense selling pressure.
However, metals, banks and automobiles indices witnessed healthy buying support.
The S&P BSE metals index augmented by 174.29 points, banks index gained by 125.87 points and automobile index was higher by 101.26 points.
On the other hand, The S&P BSE IT index plunged by 147.84 points, Teck index receded by 74.23 points and FMCG index declined by 66.75 points.