Markets off peak on profit-booking
The Sensex and Nifty ratcheted up to fresh lifetime highs on Wednesday but failed to hold on to the gains as investors took some money off the table amid concerns over frothy valuations.
IT, metal and auto counters bore the brunt of the selling pressure, while FMCG stocks saw brisk demand.
After touching a lifetime high of
57,918.71 during the session, the Sensex pared all gains to end 214.18 points or
0.37 per cent lower at 57,338.21, breaking its four-session winning run.
Similarly, the broader Nifty snapped its sevenday record-setting spree, settling 55.95 points or 0.33 per cent lower at 17,076.25. It touched an intra-day record of 17,225.75.
Auto stocks were subdued after companies posted muted sales numbers for August.
M&M was the top loser among the Sensex constituents, shedding 2.89 per cent, followed by Tata Steel,
Bajaj Finserv, TCS, HDFC, Infosys and HCL Tech.
On the other hand, Asian Paints, Nestle India, Axis Bank, Dr Reddy's, Titan and L&T were among the gainers, climbing up to 3.20 per cent.
“Despite a strong opening after favourable GDP data, domestic indices failed to hold onto its early gains due to profit booking strategy from the recent rally,” said Vinod Nair, Head of Research at Geojit Financial Services.
India’s GDP rose by a record 20.1 per cent in Q1 due to the low base effect and was powered by private consumption expenditure and investment. The auto sector showed a flattish trend as sales for August saw a decline following supply constraints, he added.
Ajit Mishra, Vp-research, Religare Broking, said the benchmarks took a breather after the recent rally.
“Markets may see some consolidation ahead and it would be healthy. We reiterate our view to focus on the banking index for further directional move in Nifty,” he added.