Caution over Q2 results depresses markets; Sensex flat

Mumbai:Caution over the upcoming bluechip results and disappointing monthly export data coupled with a rise in fuel prices led to a barometer index of the Indian equity markets trading flat during the mid-afternoon session on Friday.

Initially, both the bellwether indices opened higher on easing concerns over a rate hike possibility in the US in October and supportive Asian markets.

However, both indices ceded their initial gains due to caution over the upcoming quarterly results which included earnings figures of bluechips. 

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading flat. It was slightly lower by 10.25 points or 0.13 percent at 8,169.25 points.

The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE), which opened at 27,062.80 points, was trading at 26,987.81 points (at 2.00 p.m.) -- 22.33 points or 0.08 percent down from its previous close at 27,010.14 points.

The Sensex has so far touched a high of 27,064.21 points and a low of 26,917.12 points in the intra-day trade.

The barometer index had closed with gains of 230 points or 0.86 percent on Thursday.

Analysts observed that caution prevailed in the Indian equity markets, ahead of the key bluechip results and disappointing export figures for September.

"The Indian markets opened higher tracking the Asian indices and the positive closing of the US markets on Thursday. However, the gains were ceded, as there were no supportive triggers," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS. 

"Caution prevailed over the upcoming quarterly results and the markets were subdued due to the disappointing export figures for last month."

Nitasha Shankar, vice president, research with YES Securities, told IANS: "Broader markets are trading on a weak note. Metal and fast moving consumer goods (FMCG) stocks are witnessing selling pressure, while media stocks continue to see buying interest."

Sector-wise, S&P BSE metal index receded by 83.74 points, healthcare index declined by 43.02 points and FMCG index was down 37.62 points.

The S&P BSE capital goods index augmented by 171.14 points, oil and gas index gained by 92.40 points and automobile index surged by 79.98 points.