Profit booking, global cues dent equity indices; banking stocks down

Profit booking along with global cues as well as mixed results pulled India's equity markets lower on Wednesday.
Initially, the key indices -- S&P BSE Sensex and NSE Nifty50 -- opened flat, but rose mildly, only to cede their gains.

On the global front, Asian markets were largely down, similarly, European markets traded on a weak note.

Among sectors, metal, infra, oil and gas, private bank and auto indices ended in the red, while PSU Bank, pharma, IT and realty closed in the green.

Consequently, the 30-scrip Sensex closed at 61,143.33 points, down 206.93 points, or 0.34 per cent.

Similarly, the NSE Nifty50 closed the day's trade lower. It fell to 18,210.9 5, down 57.45 points, or 0.31 per cent.

"Equity markets opened positive and while it remained range bound for most part of the day, it witnessed selling pressure in the last hour to end in red," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.


"Global cues continued to be weak following mixed corporate results and weaker commodity prices which exerted pressure on markets. Fresh regulatory crackdown in China too dented optimism."

According to Deepak Jasani, Head of Retail Research, HDFC Securities: "Nifty lost some steam on October 27 after gaining it on the previous day."

"However 18,155 is the crucial support and till it is breached, Nifty has a chance to continue the uptrend. Advance decline ratio ended in the positive but fell from the morning levels, suggesting profit taking in broader markets."


In addition, Vinod Nair, Head of Research at Geojit Financial Services said: "Echoing weak global sentiments, domestic indices slipped into negative terrain in today's choppy trade."

"Bleeding financial stocks dragged the market despite improvements in asset quality and favourable results. Stagflation worries and flare-up in US-China tensions forced global investors to trade cautiously ahead of the announcement of another batch of Q2 corporate earnings - IANS