Sensex ends in red on profit booking after crossing 40k

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New Delhi, May 31 (IANS) The BSE Sensex ended over 100 points lower on Friday as traders took to profit booking after the index crossed the 40,000 mark earlier in the day.

The Nifty50 on the National Stock Exchange too retreated from the 12,000-mark it crossed during the morning trade to end lower.

Analysts said that as the portfolio allocation in the new cabinet took place on Friday, the initial euphoria and surge eventually subdued and made way for profit booking by investors.

The domestic market also took cue from the global indices which declined due to the ongoing US-Sino trade concerns.

The NSE Nifty50 closed at 11,922.80 points, lower by 23.10 points or 0.19 per cent from the previous close of 11,945.90.

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The Sensex, which touched an intra-day high of 40,122.34 points, ended at 39,714.20, lower by 117.77 points or 0.30 per cent from the previous close of 39,831.97. It touched an intra-day low of 39,374.24 points.

Saurabh Jain of SMC Comtrade said that with the government and Ministers taking charge on Friday, the market will now look forward to the steps it takes for the economy.

The key Finance Ministry has gone to former Defence Minister Nirmala Sitharaman. Piyush Goyal, who chipped in for then Finance Minister Arun Jaitley at times in the last government, is the Commerce Minister besides still heading the railway ministry.

“Suspense over allocation of ministries and expectation of deceleration in domestic GDP growth also led to volatility in the markets. Profit booking was broad based. However, market witnessed strong buying at lower levels which was also supported by strong gains in IT,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

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GDP growth rate for the fourth quarter of fiscal 2018-19 and the fourth quarter of the year witnessed a sharp decline on a year on year basis, which is likely to impact the market next week.

GDP growth numbers were released after market hours.

The GDP growth rate plunged to 5.8 per cent during the January-March quarter of the financial year 2018-19, from 8.1 per cent per cent growth witnessed during the same quarter the previous year, data from the Central Statistical Office showed.

For fiscal 2018-19, the country recorded a GDP growth of 6.8 per cent, the lowest growth rate in five years. In FY 2017-18, the country recorded at 7.2 per cent growth in GDP.

–IANS

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