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Global cues, inflationary pressure dent equities; auto stocks down (Roundup)

 
Mumbai, Nov 18 (IANS) India's key stock indices -- S&P BSE Sensex and NSE Nifty50 -- closed in the red on Thursday as selling pressure subdued investors' sentiments.

Accordingly, weak global cues, as well as, concern over high inflation and continuous withdrawal by FIIs led to the indices slipping for the third consecutive day.

The FIIs sold Rs 3,930.62 crore on the BSE, the NSE and the MSEI in the capital market segment during the day's trade.

Initially, both the key equity indices opened on a lower note from their respective previous closing marks.

On the global front, traders weighed risks to recovery from the prospect of faster monetary-policy tightening to tackle inflation.

In terms of domestic market, all sectors ended in the red with auto and metal indices down more than 2 per cent each, while IT and realty down 1.7 per cent.

The 30-scrip Sensex closed at 59,636.01 points, down 372.32 points or 0.62 per cent from its previous close.

Similarly, the NSE Nifty50 ended the day's trade on a lower note, falling to 17,764.80 points, down by 133.85 points or 0.75 per cent from its previous close.

"Equities still remain attractive due to negative real interest rates, a high equity risk premium and flows looking for real returns, the chart formation over the last few days suggest some more weakness before any reversal is seen," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"If the support of 17,613 is breached, this downmove can accelerate."

According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: "On the domestic side, there is lack of any triggers after the end of the quarterly result season. FIIs have sold more than Rs 6,000 crore equities in November so far."

"Overall market is in consolidation mode as valuations are rich despite good quarterly performance."

In addition, Vinod Nair, Head of Research at Geojit Financial Services said: "Weak listing of India's largest IPO and soft global market amid rising inflation woes impacted domestic sentiment."

"In the context of a weak global market, contraction extended in metal and crude oil prices weighing down the Indian market. The auto sector was also under pressure as the industry reported weak festive sales numbers owing to poor demand for two-wheelers and supply shortage in semiconductors."

--IANS
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