Stock buyers in India book profits after indices peaked this week

 NEW DELHI: Indian stock indices traded in the red on Friday morning partly due to profit booking after they peaked this week and on indications that the global fight against inflation, as indicated by various central banks, is far from over.

High stock valuations at present also may have kept investors at bay for the time being. Benchmark Sensex and Nifty were 0.4-0.5 per cent lower at the time of writing this report. On Wednesday, the benchmark index Sensex, which has been buoyant over the past several sessions, touched its all-time high.

“After the Sensex hitting record highs, the market momentum has slowed down. The mood in the markets now is not so bullish, globally. The big wall of worry continues to the rising interest rates,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The message from the leading central banks, reiterated by the Fed in its recent Congressional testimony, is that they will not let down on containing inflation and there is a long way to go before the inflation target of 2 per cent is reached,” Vijayakumar added.

In India too, RBI indicated that the fight against the price rise is not yet over but its job is half done.

RBI Governor Shaktikanta Das said bringing back inflation levels in India to the comfortable range is like a job half finished, adding that the fight against the price rise will have to be in a way where inflation figures are aligned around 4.0 per cent on a durable basis. (ANI)

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