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Profit booking subdue equities for 5th session

Profit booking subdue equities for 5th session

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  26 Sep 2017 12:00 AM GMT

Mumbai, Sept 25: Key Indian equity indices descended sharply on Monday — extending losses for the fifth session in a row — as weak global cues on the back of prevailing geo-political tensions, coupled with profit booking and expensive valuations, hampered investors’ risk-taking appetite.

Besides, heavy selling pressure in index heavyweights like Adani Ports, ITC, Lupin and Tata Steel, among others, along with persistent outflow of foreign funds, subdued market sentiment.

According to market observers, investors remained cautious about the government’s plans for a stimulus programme, which might lead to a huge fiscal deficit.

On a closing basis, the wider Nifty50 of the tiol Stock Exchange (NSE) slipped by 91.80 points or 0.92 per cent to close at 9,872.60 points.

The 30-scrip Sensitive Index (Sensex) of the BSE closed at 31,626.63 points — down 295.81 points or 0.93 per cent — from its previous close at 31,922.44 points.

The BSE market breadth was bearish — with 2,020 declines and 541 advances.

“Carrying on from last Friday, markets continued to correct sharply on Monday. It was the fifth consecutive session of losses for the Nifty and came on the back of weak global cues,” Deepak Jasani, Head - Retail Research, HDFC Securities told IANS.

“Major Asian markets have ended on a negative note, barring the Nikkei index. European indices like FTSE 100 and and CAC 40 traded lower,” he added.

In terms of the broader markets, the S&P BSE mid-cap index tanked by 1.14 per cent and the small-cap index by 2.02 per cent.

Vinod ir, Head of Research, Geojit Fincial Services, said: “Outflow of foreign funds due to the concern on gap between high valuation and earnings growth, and (US) Fed’s stance to trim their balance sheet, impacted the market sentiment.”

“Investors are also looking forward for the announcement of stimulus package by the Prime Minister later today, while at the same time concern on fiscal slippage influenced profit booking,” ir added.

In terms of investments, provisiol data with the exchanges showed that foreign institutiol investors (FIIs) sold scrips worth Rs 1,249.45 crore while domestic institutiol investors (DIIs) purchased stocks worth Rs 1,009.98 crore.

On the currency front, the rupee weakened by 31 paise to close at 65.10-11 against the US dollar from its last week’s close at 64.79-80. (IANS)

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