Stock markets came off their peak and turned weak at the strike of the opening bell, likely on the back of profit-booking after recent rally amid mixed Asian cues.
At 10.50 am, the Sensex was trading at 31,288.01, up 14.72 points (0.05%) while Nifty50 was trading at 9,666.30, up 12.80 points (0.13%).
The 30-share Sensex, which had gained 135.70 points to close at record high at 31,273.29 on Friday's trade, slipped by 40.64 points, or 0.12 per cent, to 31,232.65 with sectoral indices like FMCG, Metal and IT trading in the negative zone, falling by up to 0.27 per cent.
On similar lines, the NSE Nifty retreated from life-time high as it succumbed to profit-booking to quote 11.75 points lower, or 0.12 per cent, at 9,641.75. It had closed at an all-time high of 9,653.50 on Friday.
According to V K Sharma, Head (PCG), HDFC Securities, the Nifty is expected to build on its gains this week. Here's why:
The first is that the GST council will give final touches to the GST rates when it announces rates for Gold, Gold Jeweller, Apparels, Textiles and Biscuits on Saturday. The markets are also hopeful that the council will consider raising input tax credit from the current 40 per cent.
The second reason is that the RBI is likely to sound more accommodative when it meets on the 6th and 7th of June given the lower than expected Q4 GDP growth and falling inflation expectations.
The third reason is that the markets are confident that a rate hike in the U.S. on the 14th of June will be easily absorbed. The weak Non-farm Pay Roll numbers that came in worse than expected at 1,38,000 on Friday and a downward revision of earlier numbers will make the Fed policy less hawkish going forward. A 0.25% hike is already baked in.
Analysist attribute a lacklustre US jobs report and London terrorist attack on Sunday that weighed in on the market sentiment today.
Among Sensex-30 constituents, major losers were ITC, Coal India, Lupin, Wipro, HDFC Ltd and HDFC Bank, falling by up to 1.17 per cent.