Govt’s PSU divestment move fails to lift stock markets; Nifty ends below 12,000

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Published: November 21, 2019 4:47:33 PM

Benchmark equity indices -- Sensex and Nifty -- traded on a choppy note through the day, even as government’s announcement on the divestment of select PSUs failed to cheer the stock markets.

Sensex, Nifty50, NSE, BSE Metal Index, FPI, BSE Telecom, corporate tax rateAmong the laggards in the Sensex pack were Tata Steel, Bharti Airtel, Yes Bank, ONGC, ITC. On the other hand, HUL, L&T, Bajaj Auto and SBI were among the gainers.

Benchmark equity indices  — Sensex and Nifty — traded on a choppy note through the day, even as government’s announcement on the divestment of select public sector units (PSUs) failed to cheer the stock markets. The bourses tracked weak cues from global equities as US-China impasse continued to weigh on investor sentiment. While Sensex ended 76.47 points, or 0.19 per cent, lower at 40,575.17, Nifty closed 30.70 points, or 0.26 per cent, down at 11,968.40. Among the laggards in the Sensex pack were Tata Steel, Bharti Airtel, Yes Bank, ONGC, ITC. On the other hand, HUL, L&T, Bajaj Auto and SBI were among the gainers. On Wednesday evening, the government announced divestment plans for select PSUs including Bharat Petroleum Corporation Limited (BPCL).

“Markets are set for profit taking or consolidation prior to further rise. Traders should limit their naked leveraged trades in the index and book profits on every rise. Stocks, on the other hand, would continue to see movement on both sides thus maintain extra caution in the stock selection,” Ajit Mishra Vice President, Research, Religare Broking said.

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“The consolidation phase below 12k continues. The region around previous all-time highs of 12,100 is witnessing some profit booking. It’s not at all unexpected to witness some retracement near all-time highs. The broader structure continues to remain positive and the uptrend is intact. Near term corrections towards the support, the zone should be utilized to build long positions,” Manav Chopra, CMT, Head Research, Equity, Indiabulls Ventures said.

Meanwhile, the Indian rupee gained marginally to 71.78 against the US dollar in intra-day trade. Brent crude futures, the global oil benchmark, fell 0.51 per cent to $62.08 per barrel.

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