Business Economy

Profit booking drags Sensex from record highs

Equity benchmark indices touched new record highs on Tuesday before investors booked profit, thereby leading to the benchmarks ending the day in the red even as market participants expect further upside if the election results are in line with the exit polls.

The 30-share Sensex touched a new high of 39,571.73 — 219 points higher than Monday’s close — during the first hour of the trading session on Tuesday before profit booking in key index constituents saw the index lose ground as the session progressed.

The Sensex settled the day at 38,969.80, down 382.87 points, or 0.97%, as 27 of the constituents ended in the red.

Stocks such as Tata Steel, State Bank of India, Power Grid Corporation, Bharti Airtel and Maruti Suzuki India lost over 2% each.

Tata Motors drops 7%

Shares of Tata Motors lost more than 7% — the highest among Sensex constituents — after the company reported weak numbers on Monday amid a subdued outlook for Jaguar Land Rover (JLR).

Meanwhile, the broader Nifty closed at 11,709.10, shedding 119.15 points, or 1.01%.

Interestingly, the India VIX index, which is looked upon as a barometer of near-term volatility, rose more than 8% on Tuesday.

“Markets corrected the most in over a week after the hefty rally seen on Monday as investors booked profit after a record rally on the previous day, said Deepak Jasani, head — retail research, HDFC Securities, while adding that the underlying trend still remained strong.

Only 960 gainers

Profit booking was visible across the market with more than 1,600 stocks losing ground on the BSE, as against only 960 gainers.

Most of the sectoral and broader indices on the BSE ended in the red on Tuesday.

Meanwhile, foreign investors who were quite bullish on Indian equities in the previous two months, have remained largely subdued with net selling of more than ₹4,300 crore in the current month.

Source: thehindu.com

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