Equity indices slide on weak global cues, profit booking

Mumbai, Feb 5 (IANS) Weak global cues, along with heavy selling pressure in banking, capital goods, consumer durables and finance stocks, pulled the key Indian equity indices lower during the mid-afternoon trade session on Monday.

According to market observers, disappointing announcements in the Budget like the reintroduction of the long-term capital gains (LTCG) tax and a higher-than-expected fiscal deficit target for 2018-19 continued to dampen investors’ risk-taking appetite.

Around 12.30 p.m., the wider Nifty50 of the National Stock Exchange fell by 81.75 points or 0.76 per cent to trade at 10,678.85 points.

On the BSE, the barometer 30-scrip Sensitive Index (Sensex), which opened at 34,718.85 points, traded at 34,794.66 points — down 272.09 points or 0.78 per cent from Friday’s close.

The BSE market breadth was bearish as 1,776 stocks declined as against 854 advances.

"Indian shares opened lower on Monday, after falling most in 14 months in the last trading session, on profit taking across sections," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"Investors booked profits on concerns over LTCG tax and widened fiscal deficit target amid weak cues from the Wall Street and Asian stocks, after an upbeat jobs report sparked fears of a sharper hike in interest rates in the US," he added.

Last Friday, the equity indices fell the steepest since November 2016 due to a huge sell-off in the markets.

The Sensex plunged by 839.91 points or 2.34 per cent to close at 35,066.75 points, while the Nifty50 dropped 256.30 points or 2.33 per cent to 10,760.60 points.