Anxiety over Greece, first quarter results dent markets

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SME Times News Bureau | 02 Jun, 2015
A barometer index of the Indian equity markets closed in the red on Thursday, as worries grew over the outcome of Greece referendum and the first quarter results season.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed the day's trade down 75 points or 0.27 percent.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day's trade marginally down. It inched down by 8.15 points or 0.10 percent at 8,444.90 points.

The 30-scrip S&P BSE Sensex, which opened at 28,100.38 points, closed at 27,945.80 points, down 75.07 points or 0.27 percent from its previous day's close at 28,020.87 points.

The Sensex touched a high of 28,115.96 points and a low of 27,906.35 points in the intra-day trade.

Analysts said that while Greece uncertainty continued to brew, buyers in Indian markets were less eager to chase higher prices, after three days of relentless sharp rise.

"Markets remained in lackluster mood as investors prefer to stay sidelines ahead of Greece outcome," said Gaurav Jain, director of Hem Securities.

According to Anand James, co-head technical research desk, Geojit BNP Paribas, Reserve Bank of India's Governor Raghuram Rajan’s comments that India has a very limited exposure to the Greece tried to cheer the markets.

"RBI Governor’s comments that the government was in talks with the central bank about capital infusion to banks kept banking Nifty on a firmer note, even as Nifty stocks eased from the peaks," James said.

"Rajan’s comments cap a positive week for Indian market, which has seen economic data showing improvement in capital expenditure and core sector growth, and also key project announcements from the government," James added.

Analysts also pointed out that the crude oil’s sharp fall, following the US data showing higher inventory rise and better-than-expected performance of monsoon added some positive cues.

More importantly, the first quarter results which are expected to soon start rolling will be the main trigger for the markets.

During Thursday's intra-day trade so far, healthy buying took place in oil and gas, automobile and fast moving consumer goods (FMCG) sectors.

The S&P BSE oil and gas index rose by 85.52 points, automobile index rose by 83.97 points, and FMCG index was up by 22.08 points.

The S&P BSE healthcare index was lower by 66.33 points, followed by metal index which decreased by 58.97 points and capital goods index was down 23.15 points.

The major Sensex gainers in Thursday's trade were: Bharti Airtel, up 2.13 percent at Rs.433.55; Mahindra and Mahindra, up 2.00 points at Rs.1,316; Bajaj Auto, up 1.67 percent at Rs.2,565.80; Axis Bank, up 0.62 percent at Rs.582.35; and Hero MotoCorp, up 0.56 percent at Rs.2,532.85.

The major Sensex losers were: Tata Motors, down 1.84 percent at Rs.436.60; Hindalco Inds, down 1.72 percent at Rs.111.15; HDFC Bank, down 1.33 percent at Rs.1,057.45; Vedanta, down 1.08 percent at Rs.174; and ONGC, down 1.07 percent at Rs.310.35.

Among the Asian markets, Japan's Nikkei gained by 0.95 percent, however, China's Shanghai Composite Index dipped lower by 3.49 percent. Hong Kong's Hang Seng increased by 0.12 percent.

In Europe, the London FTSE 100 index gained by 0.21 percent, however the French CAC 40 was lower by 0.01 percent and Germany's DAX Index inched up by 0.05 percent at the closing bell Mumbai.