Sensex crosses 50,000-mark, ends lower on profit booking
Global cues and growth optimism kept the markets going before they ended in the red
MUMBAI: The BSE Sensex scaled the 50,000-mark for the first time on Thursday on growth optimism and global cues, but succumbed to profitbooking in fag-end trade to finish in the red. Weighed by selling in banking, finance and IT counters, the 30-share BSE index ended 167.36 points or 0.34% lower at 49,624.76.
Similarly, the broader NSE Nifty slipped 54.35 points or 0.37% to close at 14,590.35.
Oil and Natural Gas Corp. Ltd was the top loser in the Sensex pack, shedding 4%, followed by Bharti Airtel Ltd, State Bank of India Ltd, IndusInd Bank Ltd, NTPC, Sun Pharmaceutical Industries Ltd and ITC Ltd.
On the other hand, Bajaj Finance Ltd, Bajaj Auto Ltd, Reliance Industries Ltd, Bajaj Finserv Ltd and Asian Paints Ltd were among the gainers, climbing up to 2.72%.
Market heavyweight RIL spurted 2.09% after stock exchanges cleared Future Retail’s ₹24,713 crore deal to sell its retail assets to the billionaire Mukesh Ambani-led conglomerate, with certain riders.
“Sensex at 50,000 is great news not only for the market and investors but for the economy also. Markets are barometers of the economy with the potential to discount the future. If this is true, the Indian economy is on a strong recovery path. If the recovery in growth and corporate earnings, currently underway in India, gathers momentum, the markets may further surprise on the upside. But it is important to appreciate that the market is overvalued from the shortterm perspective. At high levels, the market is vulnerable to a correction. Investors can utilise the current euphoria to get rid of low-grade stocks from the portfolio,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Sector-wise, the BSE telecom, realty, metal and healthcare indices lost up to 2.64%, while consumer durables, energy and capital goods finished higher.
Global markets ticked higher after Joe Biden was sworn in as the US President, with investors wagering on fresh stimulus hopes by the new administration. Elsewhere in Asia, bourses in Shanghai, Seoul and
Tokyo ended in the positive zone, while Hong Kong closed in the red.
Stock exchanges in Europe were trading on a mixed note in early deals.
Meanwhile, the global oil benchmark Brent crude slipped 0.89% to $55.58 per barrel. Extending its gains for the third straight session, the rupee added another 6 paise to settle at a near five-month high of 72.99 against the US dollar.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth ₹2,289.05 crore on Wednesday, according to exchange data.
Extending its gains for the third straight session, the Indian rupee added another 6 paise to settle at a near fivemonth high of 72.99 against the US dollar on Thursday, tracking a weaker American currency overseas and sustained foreign fund inflows.
At the interbank forex market, the rupee opened higher at 72.96 and touched the day’s high of 72.93 against the greenback before shedding some gains towards the fag-end of the session.