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Profit booking halts gaining spree, market slips into red
Mumbai, February 9, 2021
A massive bout of profit booking erased the entire intra-day gains that led both key indices to touch record highs during Tuesday's trade session.
The market opened at a record high on the back of favourable cues from global bourses.
The positive cues led S&P BSE Sensex to touch a record high of 51,835.86 and the Nifty50 on the National Stock Exchange to a record high of 15,257.10 points.
The market continued to remain in favour of advancing counters till around 2.15 p.m. However, a last-hour profit booking pulled the market lower.
Globally, Asian stocks were mostly higher on Tuesday, though off the intra-day highs, as volumes remained thin ahead of the Lunar New Year holidays.
European stock markets were mixed on Tuesday, punctuating a rally since the start of the month as the price of oil continued its march higher into pre-pandemic highs.
Among sectors, banks ended in the positive while media, auto, pharma and metals indices ended in the red.
The S&P BSE Sensex closed at 51,329.08, lower by 19.69 points, or 0.04 per cent, from its previous close.
Similarly, the NSE Nifty50 also slipped. It ended the day's trade at 15,109.30, lower by 6.50 points, or 0.04 per cent, from its previous close.
"The global markets have come under minor profit taking on the seventh day of the rally," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"If this continues, we could see the Nifty correcting more towards 14,913 and later 14,753."
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "After another solid start, markets cooled off, giving up all morning gains."
"M&M and Tata Motors were the biggest losers among Nifty stocks after Automobile dealers' body FADA today said PV retail sales in January witnessed a YoY decline of 4.46 per cent."
"With the Budget behind now, the focus is now back on corporate earnings which is in its last leg. The overall long term trend of the market remains positive given confluence of economic recovery, containment of Covid-19, earnings beat, and an expansionary budget."