Caution ahead of macro-data release suppresses equities

Mumbai, June 12: Weak global cues and caution ahead of major domestic macro-data release pulled the Indian equity markets lower during the mid-afternoon trade session on Monday.

According to market observers, investors were cautious ahead of the meeting between Finance Minister Arun Jaitley and top executives of public sector banks on the sector's non-performing assets (NPAs) issue, as well as the release of Index of Industrial Production (IIP) and Consumer Price Index (CPI) data later in the evening.

Around 12.50 p.m., the wider Nifty of the National Stock Exchange (NSE) fell by 44.30 points or 0.46 per cent to 9,623.95 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,225.43 points, traded at 31,114.36 points -- down 147.70 points or 0.47 per cent from its previous close at 31,262.06 points.

It has so far touched a high of 31,225.43 points and a low of 31,070.65 points during intra-day trade.

The BSE market breadth was bearish -- with 1,435 declines and 1,039 declines.

"The equity markets started the week on a negative note because of weak global cues. Sectors which were under pressure were IT, capital goods and FMCG," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"The market is looking forward to the release of IIP and CPI inflation data for April and May, respectively, later today. Jewellery stocks rallied 3-5 per cent intra-day after the GST Council on Sunday decided to reduce GST rates for jewellery-making charges to 5 per cent from 18 per cent earlier," he added.

On Friday, value buying aided the benchmark indices to recoup their losses and close on a flat-to-positive note.

The Nifty inched up by 21 points or 0.22 per cent to close at 9,668.25 points, while the Sensex closed at 31,262.06 points -- up 48.70 points or 0.16 per cent.