Mumbai– Disappointing quarterly results, along with the global markets’ downturn, depressed the Indian equity market on Thursday.

The global markets were impacted as the Federal Reserve’s pledge to use all its tools to support the US economy failed to reassure investors about a stalemate on fiscal support and rising coronavirus cases.

Investors were also wary ahead of data that is likely to show that the US economy shrank during the second quarter at the steepest pace since World War II.

Consequent to derivatives expiry, the key equity indices fell sharply during a volatile trade session.

Besides, market breadth was negative on both the BSE and the NSE.

Sectorally, the top gainers were the BSE Healthcare and IT indices, while top losers included BSE Telecom, Oil and Gas, Bankex and Power indices.

Index-wise, the NSE Nifty50 closed at 11,102.15, down by 100.70 points or 0.90 per cent from its previous close.

The Sensex closed at 37,736.07, lower by 335.06 points or 0.88 per cent from the previous close of 38,071.13.

It had opened at 38,262.83 and touched an intra-day high of 38,413.81 and a low of 37,678.42 points.

“Indian markets have broken the recent pattern of one day up – one day down by falling for two consecutive sessions,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“Whether this will lead to a change in short term trend to down will be interesting to watch.”

On technical levels, Jasani said that while the Nifty has corrected sharply, “the short term uptrend has not yet reversed”.

“This would reverse with a close under 11,056. Downside targets in this scenario are at 10,930. Any pullback rallies could find resistances at 11,160-11,200,” he said.

According to Vinod Nair, Head of Research at Geojit Financial Services: “Global markets faded as a status quo in policy by the US Fed Reserve failed to offset tepid business outlook and resurgence in virus cases around the world. Indian markets also closed in the negative, in spite of a positive opening. Unlock 3.0 failed to enthuse, as earnings results took priority and markets turned volatile in the expiry session.”

“Financials led the losses for the benchmark index. Investors will be looking at commentary emerging from today’s meeting between the PM and key economic regulators. Stock specific action expected to continue.” (IANS)