China and Greece subdue markets; Sensex trades flat

Mumbai: Negative global cues eminating from China and Greece countered the positive sentiments surrounding the upcoming first quarter results and subdued a barometer index of the Indian equities during the mid-afternoon trade session on Thursday.

The benchmark index of the Indian equity markets, the 30-scrip BSE Sensitive Index (Sensex), was trading flat - down 49 points or 0.18 percent during the mid-afternoon session.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading flat, down 14.15 points or 0.17 percent at 8,348.90 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 27,681.49 points, was trading at 27,638.82 points (at 1.45 p.m.) in the mid-afternoon session, down 48.90 points or 0.18 percent from the previous day's close at 27,687.72 points.

The Sensex so far touched a high of 27,798.13 points and a low of 27,601.01 points in the intra-day trade.

Analysts said pointed-out that the investor confidence was shaken a day after the barometer index lost 484 points due to the fears of a Chinese stock market meltdown and the stalemate in Greece crisis.

"Various factors are at play today. The hopes of a healthy first quarter (Q1) results, good monsoon progress and the positive US Fed's FOMC (Federal Open Market Committee) minutes were cancelled by the fears of Chinese stock markets crash and Greece issue," Anand James, co-head, technical research desk, Geojit BNP Paribas, told IANS.

"There is a consensus in the market that the Q1 of 2015-16 will be better than the Q4 of 2014-15, due to factors like lower inflation, easing of monetary policy and stable rupee," James said.

However, the positive bias is being cancelled-out by the negative international cues from China and Greece. 

Even the sharp fall in light sweet crude oil (WTI) futures and options index on Wednesday which pegged a barrel at $50 failed to cheer the markets. 

The India markets which depend on Brent crude oil index are also effected by the price movements of WTI.

During Thursday's intra-day trade, healthy buying was observed in capital goods, consumer durables and capital goods stocks. 

Whereas, the information technology (IT), oil and gas and technology, entertainment and media (TECK) stocks came under intense selling pressure.

The S&P BSE capital goods index augmented by 322.33 points, consumer durables index extended-gains by 92.37 points and healthcare index rose by 60.46 points.

The S&P BSE IT index plunged by 141.17 points, oil and gas index receded by 117.43 points and TECK index was down by 53.35 points.