Global cues, profit bookings dent equity market
Business & Economy

Global cues, profit bookings dent equity market


Mumbai, August 12, 2020

The Indian equity market closed marginally lower on Wednesday after six consecutive sessions of gains.

Analysts opined that profit booking, along with negative global cues, depressed the market.

Sector-wise, the top gainers included BSE Auto, Power and IT indices, whereas BSE Healthcare, CD, Metal and Realty indices lost ground.

Globally, major Asian markets have closed on a mixed note.

However, European indices like the FTSE and CAC ended higher.

Index-wise, the NSE Nifty50 closed at 11,308.40, down by 14.10 points, or 0.12 per cent, from its previous close.

The Sensex closed at 38,369.63, lower by 37.38 points, or 0.10 per cent, from the previous close of 38,407.01.

It had opened at 38,321.13 and touched an intra-day high of 38,414.37 and a low of 38,125.81 points.

"Technically, while the Nifty has ended lower, the underlying short term trend remains up. The uptrend could accelerate once the immediate highs of 11,322 are cleared," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Crucial supports to watch for any trend reversal are at 11,130."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Indian benchmark indices closed out a volatile day, flat, with a negative bias. Global cues added to the uncertainty with doubts emerging about the expected US stimulus measures and continuing US-China tensions."

"Profit booking continued in the Pharma sector. Markets are reacting uncertainly to global cues and this uncertainty is expected to continue. Downside looks limited but investors are advised to remain cautious, considering the valuations of some of the stocks."