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Profit booking subdues markets, banking stocks fall
Mumbai, October 13, 2020
Profit booking, along with global cues, subdued the Indian equity benchmark indices which closed on a flat note during Tuesday's trade session.
Volumes on the NSE were just under the recent average.
Segment wise, IT and energy indices did well as did Reliance, whereas bank, media, auto and pharma indices were down.
In terms of global markets, Asian indices were mostly flat as investors took a breather after the previous day's rally.
Besides, European shares retreated from five-week highs as Johnson & Johnson's move to pause its Covid-19 clinical trials raised doubts about the timeline of a vaccine.
The S&P BSE Sensex closed at 40,625.51, higher by 31.71 points or 0.08 per cent, from its previous close.
The Nifty50 traded at 11,934.50, higher by 3.55 points or 0.03 per cent, from its previous close.
"Markets lack the momentum to make sizeable gains from the current levels and look tired in terms of indices," said Deepak Jasani, Head of Retail Research at HDFC Securities.
According to Vinod Nair, Head of Research at Geojit Financial Services: "Market may consolidate due to below than anticipated stimulus package and the large part of the positive Q2 results announced till date is well factored in the prices. The momentum may reverse into a narrow-range, in the near-term, while the undercurrent of the rally is still positive and a break-up is likely based-on the continuity of positive results, more fiscal measures in the future and developments in the global market."
"Today, the banking sector lost some ground due to adjournment of moratorium hearing to next day."
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said: "Indian equity markets ended flat with marginal gains, on account of profit booking."
"Global cues were mixed as worries over the coronavirus pandemic overshadowed positive Chinese trade data. This was despite a firmer US market on account of optimism over fresh US stimulus. On the domestic side, fiscal stimulus announced by the government ahead of the festival season failed to lift sentiment which led to some consolidation in the market," he added.