Market Suffers Losses On Extreme Profit Booking

The Indian stock market witnessed enormous profit booking as the sectors suffered heavy losses. Global weakness and no fresh cues turned the investors to become greedy. 

The National Stock Exchange (NSE) Nifty 50 index ended 1.17 per cent lower at 24,717 whereas the S&P Bombay Stock Exchange (BSE) Sensex settled 885 points or 1.08 per cent lower at 80,981 levels on the closing bell. 
 

Nifty Moves

In the Nifty 50 index, merely 9 stocks advanced in the positive territory, whereas 41 stocks ended in the red territory. 

Among the winners, Divis Lab topped the index with 1.49 per cent followed by 1.24 per cent gain in HDFC Bank. Dr Reddy also gained more than 1 per cent. 

Among the losers, Eicher Motors fell 4.87 per cent, while Maruti and Tata lost more than 4 per cent. Hindalco, JSW Steel, Wipro, ONGC and Larsen & Toubro also lost more than 3 per cent. 

Analyst Note  

“As global equity indices tumbled, investors in domestic markets too felt the heat and resorted to profit taking. The recent upsurge had made Indian stocks very expensive and hence correction was due for some time. Despite the slump, our resilient economy and strong fundamentals along with healthy corporate earnings would keep the downside limited,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Sectoral Movement

In terms of sectoral performance, Nifty Bank and Financial Services ended 0.41 per cent and 0.3 per cent lower respectively. While PSU Banks ended 1.72 per cent lower. 

Auto ended almost 3 per cent lower, while Metal followed by 2.7 per cent lower. Nifty Realty shredded 3.53 per cent, while IT lost 2.4 per cent. FMCG shredded 0.69 per cent, while 0.52 per cent. 

The more domestically focussed indices, Mid-cap ended lower with 0.99 per cent loss, whereas Small-cap fell almost 0.79 per cent.