Weak global cues, profit booking dent market indices; IT stocks fall

Weak global cues along with profit booking dragged India's key equity indices lower during Wednesday's mid-afternoon trade session.

Besides, higher crude oil prices impacted investors' sentiments.

Globally, Asian shares lost ground on Wednesday as worries over economic growth in China combined with fears of a global slowdown set in.

Sector-wise, power, oil and gas and metal indices gained the most while realty, IT and telecom indices fell the most.

However, power stocks lead the gains as global power shortages have led to buying interest in the Indian power stocks.

Consequently, S&P BSE Sensex traded at 59,417.21 points, lower by 250.39 points or 0.42 per cent from its previous close.

Similarly, NSE Nifty50 edged lower. It fell to 17,706.60 points, lower by 42 points or 0.24 per cent from its previous close.

"Weak global cues have led to the softness in the Indian markets. Volumes on the NSE are a little higher than recent average. Advance decline ratio is positive and the broad market indices," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Indian markets will watch the European markets for cues and could weaken further if the European markets give away their initial gains."

According to Gaurav Garg, Head of Research, CapitalVia Global Research: "Indian equity benchmarks continue to trade in red in the afternoon session with both Sensex and Nifty trading in red terrain."

"Domestic sentiments impacted by negative cues from other Asian markets. Among the sectors, Metal, Realty and Power indices up 1-2 per cent, while selling is seen in the IT, Auto and Banking stocks. BSE mid-cap and small-cap indices are trading marginally higher."

In addition, Chandan Taparia, Technical and Derivatives Analyst, MOFSL said: "At current juncture, we are witnessing good momentum in PSU and Pharma space and one can look for buying opportunity in counters like Sun Pharma and BEL.