Global cues, profit booking subdue stock market, Sensex ends flat
Mumbai, September 7, 2021
The Indian stock market ended on a flat-to-negative note on Tuesday amid volatility.
The domestic market declined from the record high levels due to profit booking post the recent bull run and weak global cues, analysts said.
Earlier in the day, the BSE Sensex touched its record high of 58,553.07 and the Nifty50 hit its fresh high of 17,436.50 points.
Heavy selling pressure was witnessed in IT and oil and gas stocks, while telecom stocks rose on the back of hopes of a relief package for the telcos.
The Sensex closed at 58,279.48, lower by 17.43 points or 0.03 per cent from its previous close of 58,296.91 points.
It had opened at 58,418.69 and touched an intra-day low of 58,005.07 points.
The Nifty50 on the National Stock Exchange closed at 17,362.10, lower by 15.70 points or 0.09 per cent from its previous close.
Shrikant Chouhan, Executive Vice President (equity technical research) with Kotak Securities, said: "Markets witnessed selective profit-taking on the back of tepid global cues, while the benchmark Nifty witnessed intraday weakness near the 17,450 resistance level. After witnessing an 800 points rally, the index is exhibiting a range-bound trend, which indicates that bulls could be feeling the discomfort to go further near 17,450.
"But technically, a short-term correction is possible only if the index falls below 17,290. For the next few trading sessions, 17,290 could act as a trend deciding level, above which we can expect one more uptrend wave towards 17,450-17,500 levels," he said.
The top gainers on the Sensex were HDFC, Bharti Airtel and ITC, while the major losers were Sun Pharmaceutical Industries, Tech Mahindra and Axis Bank.