Mumbai (Maharashtra) [India], June 30 (ANI): Equity benchmark indices underwent bouts of volatility on Tuesday but ended flat despite strong global cues after data showed that China’s manufacturing sector grew more than expected in June.
Investors said traders preferred to book profits and took shelter of safe-haven assets like gold and it is generally considered as a traditional hedge.
“The fears of rapid coronavirus and its impact on global growth and rising geopolitical tensions between India-China, US-China and US-European Union has increased the demand for gold. Moreover, rise in crude oil prices and hike in gold ETFs holdings is providing support to the gold price,” said Rahul Gupta, Head of Research for Currency at Emkay Global Financial Services.
At the closing bell, the BSE S&P Sensex was down by 46 points or 0.13 per cent at 34,916 while the Nifty 50 edged lower by 10 points or 0.1 per cent at 10,302.
Sectoral indices at the National Stock Exchange were mixed with Nifty PSU losing by 1.7 per cent and pharma by 1.5 per cent.
Among stocks, Bharat Petroleum Corporation was down by 2.5 per cent to close at Rs 373.75. Power Grid Corporation fell by 1.9 per cent, GAIL by 1.8 per cent, IndianOil Corporation by 1.7 per cent, Coal India by 1.2 per cent and ONGC by 1 per cent.
Sun Pharma, Vedanta, Bharti Airtel and UPL too closed in the negative terrain.
However, auto stocks gained with Maruti Suzuki up by 2.6 per cent at Rs 5,830 per share, Hero MotoCorp by 1.8 per cent and Eicher Motors by 1.1 per cent.
Nestle India, Britannia, Tata Steel and HDFC traded with positive bias but with thin margins.
Meanwhile, Asian shares rose after data in China showed activity quickening in its vast factory sector. That was a hopeful sign for the global economy struggling to recover from the impact of the coronavirus crisis.
Hong Kong stocks were up by 0.5 per cent despite the Chinese parliament’s passage of a security law that will increase Beijing’s control over the former British colony.
The Nikkei rose by 1.33 per cent while shrugging off a decline in Japanese industrial production and South Korean Kospi was up by 0.71 per cent. (ANI)
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