Equity markets halt seven day rally on profit-booking

Mumbai: Equity benchmarks nursed losses on Tuesday as investors booked profits after a seven-session rally amid weak Asian market cues and foreign fund outflows. The 30-share BSE Sensex failed to hold on the early gains and declined 287.70 points or 0.48 per cent to finish at 59,543.96. During the day, it hit a low of 59,489.02 and a high of 60,081.24. On similar lines, the broader NSE Nifty fell 74.40 points or 0.42 per cent to end at 17,656.35. Nestle India was the top loser in the Sensex pack, slipping 2.83 per cent, followed by Hindustan Unilever, Bajaj Finserv, Kotak Mahindra Bank, HDFC, Reliance Industries, Bajaj Finance and Asian Paints. Market heavyweight Reliance Industries was the biggest drag on the benchmark following lacklustre Q2 results. In contrast, Tech Mahindra, Maruti, Larsen & Toubro, Dr Reddy’s, SBI, NTPC and M&M were among the winners, climbing as much as 3.29 per cent. The domestic market pared its early gains with FMCG and private banks pressuring the benchmark. Market attention has shifted to central bank policy announcements since the European Central Bank is expected to hike interest rates at its upcoming policy meeting. “The impending US GDP data will give additional clarity to the expectation that the Fed will temper its aggression in regard to rate hikes,” said Vinod Nair, Head of Research at Geojit Financial Services. In the broader market, the BSE small cap gauge dipped 0.35 per cent, while the midcap index climbed 0.45 per cent. Among BSE sectoral indices, FMCG fell 1.10 per cent, telecommunication dipped 0.91 per cent, financial services went lower by 0.62 per cent, realty declined 0.61 per cent and utilities lost 0.60 per cent. Among the gainers were capital goods, auto, industrials and oil and gas. “While the global markets are still not portraying any clear trend, the recent buying in heavyweights especially from the banking pack has lifted the sentiment. We may see some consolidation in the index ahead but the tone is likely to remain positive. The focus should remain on identifying stocks from the sectors which are participating in the move, without losing focus on risk management…,” said Ajit Mishra, VP - Research, Religare Broking Ltd. Elsewhere in Asia, markets in Seoul, Shanghai and Hong Kong ended lower, while Tokyo finished higher. Stock exchanges in Europe were trading on a mixed note in mid-session deals. Wall Street had ended higher on Monday. International oil benchmark Brent crude was trading 1.27 per cent lower at USD 92.08 per barrel. The rupee appreciated 7 paise to close at 82.81 (provisional) against the US dollar on Tuesday, as easing crude oil prices buoyed investor sentiments. Foreign Institutional Investors (FIIs) offloaded shares worth Rs 153.89 crore on Monday, as per exchange data. In a special one-hour Muhurat trading session on Monday to mark the beginning of Hindu Samvat year 2079, the BSE benchmark jumped 524.51 points or 0.88 per cent to end at 59,831.66. The Nifty advanced 154.45 points, or 0.88 per cent, to finish at 17,730.75. The BSE and NSE will be closed on Wednesday (October 26) on the occasion of ‘Diwali Balipratipada’. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.