Share market indices continued their declining trend for the third straight session on Thursday as investors booked profits in auto, financial and banking stocks. Tracking weak cues from Asian equities, Sensex ended 379 points lower at 51,324 and Nifty fell by 89 points to 15,118. Yesterday, BSE 30-share Sensex ended 400 points lower at 51,703 and NSE Nifty 50 fell by 104 points at 15,208.
Traders said markets are experiencing correction after significant gains made post the Union Budget and positive quarterly results, while mostly remaining positive for small and mid-caps. As the domestic market lacks any major upcoming economic event, the overall global consumer sentiment would play an important role in evaluating the short-term trend.
Sectorally, auto, metal, media and PSU bank index were in buying demand, while FMCG, IT, realty, private banking and pharma sectors witnessed selling. Bajaj Finance, Kotak Mahindra Bank, Mahindra & Mahindra, Nestle and HDFC traded as the top losers on BSE and NSE today. On the other hand, ONGC, SBI, Power Grid, RIL, NTPC, ITC, Tech Mahindra, Infosys, RIL, TCS and IndusInd Bank were among the top gainers.
US indices saw profit booking from highs as investors waited for a stimulus package to be rolled out next week. In the US, the Nasdaq closed lower while the S&P 500 changed little on Wednesday after concerns about inflation due to rising bond yield added bearish pressure on equities.
European markets opened on a lower note as investors gave importance to rising bond yields in the US and outlook for inflation and with bearish direction from Asia and Wall Street.
Expressing views on Nifty index reclaiming 15,100 marks, Ashis Biswas, Head of Technical Research at CapitalVia Global Research said, "Indian stock indices turned negative, with Sensex and Nifty trading with notable losses. Domestic optimism was influenced by pessimistic hints from other Asian markets. Nifty is currently trading at 15,107, down by 131 points or -0.86 per cent after trading in a range of 15,250 and 15,084. the traders are advised to refrain from building a new buying position until further improvement and breakout of 15,370."
Ajit Mishra, VP - Research, Religare Broking said, "Markets inched further lower and lost over half a per cent, in continuation to the prevailing corrective phase. After a flat opening, the benchmark indices witnessed a gradual fall, led by selling pressure in sectors such as auto and banks and settled around the day's low. Amongst the sectoral indices, a mixed trend was witnessed wherein power, oil and gas and metals were the top gainers."
He added," We may see further consolidation in markets, in absence of any major trigger. Meanwhile, the focus should be on position management. Nifty has the next major support around the 14,850-14,950 zone."
In the foreign exchange market, the rupee appreciated to 72.7325 as compared with its previous closing of 72.7450.
Commenting on the rupee, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said, "Local equities have seen healthy inflows since the announcement of the Budget, which has supported the rupee at a time when US yields and crude oil prices are inching higher. We believe the domestic currency has scope to rise towards 72.20 in the near term on the back of the flows and continuation of accommodative monetary policy stance of the US Fed. However, if the Brent contract inches towards $70 per barrel mark, it will begin to hurt the rupee. We expect the rupee to trade in the 72.30 to 73.20 band in the near term."
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