The benchmark equity indices -- Sensex and Nifty -- settled lower on Tuesday tracking selling in IT and PSU bank stocks, as investors booked profits in overbought shares toward the year-end.
The benchmark equity indices — Sensex and Nifty — settled lower on Tuesday tracking selling in IT and PSU bank stocks, as investors booked profits in overbought shares toward the year-end. The market ended at 1-month low with the Sensex dropping 247.55 points to end at 40,239.88, while Nifty closed below 11,900. The market breadth was firmly in favour of declines with the advance-decline ratio at 1:3. The Nifty IT index ended 1.39 per cent lower with Tata Consultancy Services (TCS) dropping by 2.15 per cent. Yes Bank was the biggest laggard among Nifty stocks, shedding 10.4 per cent, while Bajaj Finance was the top gainer, advancing 1.26 per cent.
“We continue to maintain our cautious stance on the Indian markets due to stretched valuations. Going forward, trade developments between US – China, Fed rate decision and election in UK (Thursday) would dictate the trend for global markets including India. On the domestic front, given the slower growth and higher inflation in the last month, the market participants would keep a close watch CPI, IIP and WPI data scheduled this week,” Ajit Mishra, VP – Research, Religare Broking said.
“After a Doji formation in earlier session, profit booking continues for the Nifty negating the Doji formation. Index has closed below the 20 Ema for the past few sessions. Near term upward momentum is fading out and a phase of correction/consolidation is setting in. market breadth was sharply negative indicating the overall mood on the street. Near term support is placed at 11,800, however, the stronger important support zone is placed at 11,700 which may get tested however, the support zone is likely to hold in the near term,” Manav Chopra, CMT, Head Research Equity, Indiabulls Ventures said.