Derivatives expiry subdues markets, Sensex trades flat

Mumbai: Upcoming derivatives expiry, coupled with caution over chances of an interest rate hike in the US, subdued Indian equity markets during early hours of trade on Thursday.

This led to a barometer index of the Indian equity markets to trade flat.

Caution over the upcoming rate-setting meeting of the US Fed dented investors sentiments. The US Fed’s FOMC (Federal Open Market Committee) meet is scheduled for January 27-28.

Even, concerns over the roll-over figures from the upcoming F&O (Futures and Options) expiry subdued sentiments.

Lower volumes and continous selling by foreign investors halted markets attempts to rise higher.

However, international cues from Asian markets were positive, as indices in the regional traded in the green.

Besides, a bounce back in the crude oil prices which stood at over $30 per barrel capped losses.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was trading flat — marginally higher by just two points, or 0.01 percent during the early morning trade session.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading flat. It inched-up by 2.20 points, or 0.03 percent, at 7,435.55 points.

The S&P BSE Sensex, which opened at 24,481.86 points, was trading at 24,494.54 points (at 9.25 a.m.) – up 2.15 points or 0.01 percent from the previous day’s close at 24,492.39 points.

The Sensex has so far touched a high of 24,529.64 points and a low of 24,400.52 points during the intra-day trade.

The Sensex had closed the previous session on January27, up by just 6.44 points, or 0.03 percent, while the Nifty inched up by two points or 0.02 percent.