Based on incremental data points received over the past one month, the expected downside to the event appears to be diminishing and the recent low of around 7,700 on the Nifty is the near-term floor for the Indian equity market, the report said. However, the gains were capped ahead of the release of key United States macro data on employment.
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Nevertheless, investors kept an optimistic outlook with the RBI announcing that it will maintain an accommodative stand on future rate cuts and that the economy is eventually limping towards a marked recovery.
After paring some of its initial losses, the 30-share BSE S&P Sensex ended the session at 26,117.85, down 51.56 points, or 0.2 percent from previous close.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading in the red.
The 30-share Sensex resumed higher at 26,239.39 and hovered between a high of 26,256.42 and a low of 26,044.26.
“Lack of fresh triggers and concerns over a demand slowdown as indicated by ECI and PMI data impacted investor sentiments”, Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
However, cautioned prevailed on sustained outflows by foreign funds and a weak trend in global markets as investors are waiting for key United States jobs numbers and a European Central Bank meeting later this week.
“Mainly, under-performance from the banking and finance counters hurt the sentiment and that further worsened with decline in IT & capital goods”, said Jayant Manglik President Retail Distribution of Religare Securities.
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Indian markets dropped on Wednesday erasing earlier gains. From this space, major losers were SBI, ICICI Bank, HDFC Bank and Axis Bank, falling by up to 1.83 per cent. Other losers, which also contributed to the fall include BHEL, Infosys, HDFC, Tata Motors, Coal India, HUL, L&T, Wipro and Hero MotoCorp.
