Mumbai: Equity Indices Decline Amid Profit-Taking and Global Weakness
Overview
In early trading on Thursday, Indian equity benchmark indices witnessed a decline as profit-taking ensued following a record rally, amidst subdued global market trends. The 30-share BSE Sensex opened on a cautious note, slipping 251.93 points to 80,464.62, while the NSE Nifty dipped 76.6 points to 24,536.40.
Sectoral Performance
Asian Paints led the losses among Sensex constituents, dropping 2% after reporting a 24.64% decline in consolidated net profit to Rs 1,186.79 crore for the June quarter. The downturn was attributed to weakened demand exacerbated by severe heatwaves and the impact of general elections. Other notable underperformers included UltraTech Cement, Bajaj Finance, Tata Steel, JSW Steel, and NTPC.
Conversely, Sun Pharma, Axis Bank, Infosys, Tata Consultancy Services, and Bharti Airtel defied the broader market sentiment, trading positively.
Global Market Trends
Asian markets displayed mixed sentiments with Seoul, Tokyo, and Shanghai trading lower, while Hong Kong exhibited gains. In the US, markets closed mostly lower on Wednesday.
Commodities and Investments
Global oil benchmark Brent crude edged up by 0.35% to USD 85.38 per barrel, reflecting moderate price movements in the commodity sector.
Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 1,271.45 crore on Tuesday, as per exchange data. The markets remained closed on Wednesday due to Muharram observances.
Recent Market Performance
On Tuesday, the BSE Sensex reached a new lifetime high, gaining 51.69 points to settle at 80,716.55. Intraday, it peaked at 80,898.30, marking a significant milestone. Similarly, the NSE Nifty closed at an all-time high of 24,613, up by 26.30 points, with an intra-day high of 24,661.25.
Conclusion
The Indian equity market’s early decline today, influenced by profit-taking and global market trends, highlights the cautious sentiment among investors following recent record highs. The performance of key sectors and global economic indicators will likely continue to influence market dynamics in the upcoming sessions.
