Indian stock markets volatile in afternoon trade

MUMBAI - Benchmark indices for Indian equities turned volatile in afternoon trade Wednesday amid lingering fears about the European debt crisis and negative sentiments at other global bourses.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,574.79 points, was ruling at 16,640.09 points, 68.06 points or 0.41 percent up from its previous close at 16,572.03 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was ruling at 4,987.25 points, up 0.34 percent from its previous close at 4,970.2 points.

Broader markets indices ere down from their morning highs, with the BSE midcap index ruling 0.06 percent up and the BSE smallcap index 0.28 percent higher.

Among other Asian markets, the Japanese Nikkei ended 1.12 percent lower at 9,603.24 points giving up intra-day gains garnered after Prime Minister Yukio Hatoyama said he would resign, two months before elections.

Hatoyama’s announcement raised concerns that the world’s second-largest economy will continue to sputter at a time when factory output in China is falling and European governments are struggling amid record deficits.

Hong Kong’s Hang Seng closed at 19,471.8, down 0.13 percent, while the Shanghai composite index ended 0.12 percent up at 2,571.42 points.

The South Korean markets were closed Wednesday.

In Europe, oil stocks dragged the markets after US initiated a criminal investigation into Oil major BP’s oil spill off the Gulf of Mexico.

The FTSE 100, UK’s key index was ruling 1.63 percent lower at 5,079.07 points.

Its French peer, the CAC 40 was also in the negative at 3,447.08 points, down 1.6 percent, while the German DAX was trading with a 1.7 percent loss at 5,879.31 points.