Profit booking, global cues dent indices; realty, IT stocks plunge

Mumbai, Sep 28 (IANS): India's key equity indices ended Tuesday's trade session in the red on the back of profit booking along with mixed global cues which subdued investors' sentiments.

Besides, higher crude oil prices and US Fed tapering fears pulled both the indices lower.

Globally, stocks in Asia-Pacific mostly declined in Tuesday trade, as various firms downgraded China's GDP forecasts amid a power crunch.

Furthermore, European stocks fell on Tuesday, as a surge in government bond yields pressured high-growth technology shares, with fresh signs of a slowdown in China's economy weighing on investor sentiment. A rally in Brent crude futures above $80 per barrel continued to support energy stocks.

Sector wise, power, oil and gas and metal indices gained the most while realty, IT and telecom indices fell the most.

Consequently, S&P BSE Sensex closed at 59,667.60 points, lower by 410.28 points or 0.68 per cent from its previous close.

Similarly, NSE Nifty50 edged lower. It fell to 17,748.60 points, lower by 106.50 points or 0.60 per cent from its previous close.

"Nifty regained some of the morning losses on bottom fishing," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Earlier stocks came under selling pressure due to a combination of negatives including rising US yields, power shortage in China and its effect on the global supply chain, and rising inflation across the globe."

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "Equity market opened positive but could not sustain at higher levels and witnessed profit booking. However, it made smart recovery towards the fag end of the session, recouping over half of the losses."

"Global markets witnessed weakness as investors continued to remain cautious over the inconclusive German election along with Chinese property group Evergrande's ongoing debt crisis and eyed the potential impact of a widening power shortage in China."

In addition, Vinod Nair, Head of Research at Geojit Financial Services said: "Following negative global cues and profit booking in IT and realty sectors, the domestic market hit rough weather, however, it witnessed a rebound towards the closing."

"Rise in US bond yield and crude oil price along with the Chinese crisis acted as key headwinds to the ongoing rally in the global market. Amid broad-based selling in the domestic market, public sector, energy and metal stocks traded higher."



Top Stories

Leave a Comment

Title: Profit booking, global cues dent indices; realty, IT stocks plunge

You have 2000 characters left.


Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will be held responsible.

Security Validation

Enter the characters in the image