Profit booking dents equity markets

Mumbai, Aug 9 (IANS) Profit booking, along with lower crude oil prices and a weak rupee, dented the Indian equity markets during the mid-afternoon trade on Tuesday.

Even the disappointment over the Reserve Bank of India’s (RBI) decision to maintain its key lending rates during the monetary policy review dampened sentiments and intensified selling pressure in automobiles, fast moving consumer goods (FMCG) and metal stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down by 54.25 points or 0.62 per cent to 8,657.10 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,289.22 points, traded at 28,027.51 points (at 1.45 p.m.) — down 155.06 points or 0.55 per cent from the previous close at 28,182.57 points.

The Sensex has so far touched a high of 28,289.96 points and a low of 27,956.77 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears — with 1,601 declines and 988 advances.

On Monday, the key indices had closed in the green due to positive global cues, along with hopes of parliamentary approval for a major economic legislation.

The barometer index had gained by 104.22 points or 0.37 per cent, while the NSE Nifty edged up by 28.20 points or 0.32 per cent.

“Consolidation and profit booking in the absence of any fresh positive development dragged the equity markets lower,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls cited that selling pressure was intensified after the RBI maintained a status-quo in its key lending rates.

“Most IT stocks traded down, while banking and pharma stocks traded with mixed sentiments. Auto and aviation sector stocks faced selling pressure,” Desai noted.

“Most FMCG stocks traded down due to profit booking. Firm USD/INR futures prices are likely to keep the sentiments on Nifty bearish.”



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