Mumbai, (Asian independent) Profit-booking, along with subdued global cues, pulled the Indian equity indices lower on Thursday.
The downslide came after five consecutive sessions of gains for S&P BSE Sensex and seven for NSE Nifty50.
Both the key indices — Sensex and Nifty50 — opened on a negative note but recovered some of the lost ground at the trade session.
Globally, Asian stocks declined after weakness in technology companies led to an overnight decline on Wall Street.
However, expectations of more European Central Bank stimulus kept Europe’s main stock markets and the Euro steady.
Back home, sustained buying in FMCG heavyweights helped benchmarks stage partial recovery from intraday low levels.
Similarly, sustained buying by foreign investors arrested any major downslide. They pumped in liquidity worth Rs 2,259.98 crore on Thursday.
In terms of sectors, cement stocks came under heavy selling pressure after the Competition Commission of India (CCI) started an investigation regarding anti-competitive behaviour witnessed in the sector.
Among other sectors, FMCG and metals gained the most, while media, PSU bank, auto were the main losers.
Consequently, Sensex was trading at 45,959.88, lower by 143.62 points, or 0.31 per cent, from the previous close.
The Nifty50 was trading at 13,478.30, lower by 50.80 points, or 0.38 per cent, from the previous close.
“Nifty, after filling the upgap made on Dec 09, has closed at the intra day high. The hitherto performing sectors are undergoing a correction while defensives like FMCG have started to perform,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“An upward breach of 13,549 could result in resumption of uptrend. Till then doubts will remain as to whether we have made an intermediate top.”
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: “Though the markets witnessed profit booking today, the overall structure of the market remains positive given abundant liquidity, developments on the vaccine front and signs of economic recovery. The market may however, consolidate in near term given weak global cues.”
“Overall lower levels of volatility suggests that Bulls are holding the tight grip and any small decline could be bought in the market.”
Vinod Nair, Head of Research at Geojit Financial Services, said: “After five days of bullish rally, the domestic market reversed along with Asian peers, backed by weak global markets, triggering profit booking across major sectors. PSU Banks, small and midcaps which were so positive recently were also under bearish attack.”
“Markets being at the highest level, any unfavourable events, domestic or global, can result in temporary profit booking. However, we believe that the market is optimistic enough to continue the rally post a required consolidation.”
