Profit booking, global cues subdue equity markets
Mumbai, July 16, 2021
Profit booking, as well as mixed global cues, subdued India's equity markets on Friday.
Initially, the equity markets opened at an all-time high, boosted by metal and pharma stocks, with benchmark indices logging in their first weekly gains in last three weeks.
However, they ended the day's trade almost flat due to profit booking.
The BSE Sensex ended the day's trade at 53,140.06 points, lower by 18.79 points, or 0.035 per cent, from its previous close.
The Nifty50 on the National Stock Exchange closed at 15,923.40, slipped by 0.80 points, or 0.01 per cent, from its previous close.
"After making new intra day highs, mixed Asian and European markets weighed on the local markets," HDFC Securities' Head of Retail Research, Deepak Jasani, said.
"IT stocks came under profit booking despite encouraging numbers from Infosys and Wipro. Realty, metals, and telecom stocks gained. New age companies like IRCTC, BSE, ICICI Sec, CDSL, Angel Broking etc attracted fresh buying as investors were willing to bet on their long- term growth trajectory."
Motilal Oswal Financial Services' Head, Retail Research, Siddhartha Khemka, said: "Technically Nifty formed a bearish candle on daily scale. However it formed a bullish candle on weekly frame with supports gradually shifting higher for the next leg of rally."
"Now, it has to hold above 15,900 zone to witness an up-move towards 16,200 levels while on the downside support exists at 15,750 levels."
Geojit Financial Services' Head of Research Vinod Nair said: "The risk of profit booking is rising due to elevated performance and lack of direction from the western developed markets with flat performance recently."
"FIIs continue as net sellers in the domestic equity market during the past few days."