Global cues, profit-booking pulls equities down
Mumbai, July 8, 2021
Negative global cues, as well as profit booking, pulled the Indian equities market lower on Thursday.
Weak global cues triggered profit booking. Besides, selling was broad-based as most of the sectoral indices on both the key indices closed in the red.
The S&P BSE Sensex closed at 52,568.94, lower by 485.82 points, or 0.92 per cent, from its previous close of 53,054.76.
It had opened at 53,065.69 and touched an intra-day high of 53,103.03 and a low of 52,428.84 points.
Similarly, the Nifty50 on the National Stock Exchange closed at 15,727.90, lower by 151.75 points, or 0.96 per cent, from its previous close.
"Technically, support for the Nifty comes in at 15,635. While 15,900 resistance is turning out to be a tough nut to crack," HDFC Securities' Deputy Head of Retail Research Devarsh Vakil said.
Motilal Oswal Financial Services's Head, Retail Research, Siddhartha Khemka said: "Domestically, Nifty ended with sharp losses as profit booking pulled the market down even as global cues remained negative."
"Also sentiments got impacted after rating agency Fitch lowered India's GDP outlook for FY22 to 10 per cent from 12.8 per cent earlier, expecting a sluggish recovery post the second wave of Covid-19."
Geojit Financial Services' Head of Research Vinod Nair said: "Pessimistic global cues dented the morale of Dalal Street with selling pressure seen across the sectors amid high volatility. Global markets were deep in the red, shadowing a weakness in the Asian markets following the widening Chinese tech crackdown and concerns over the country's economic recovery."
"As we kickstart Q1FY22 results season, initial releases of IT sector and good number of lucrative IPOs will be in focus for the coming weeks."