Sensex snaps 5-day rally on profit booking, weak global cues
Mumbai, July 8, 2020
The Indian stock market broke its five-day gaining streak with a last-hour plunge as traders took to profit booking on Wednesday.
Decline in the global markets also weighed on the domestic indices, analysts said.
After opening on a positive note, the indices traded on a choppy note, but plunged in the last hour of trade.
Rahul Sharma, Market Strategist & Research Head, Equity99 Advisors, said: "Profit booking in Reliance Industries, financials and technology stocks reversed the market trend after five consecutive sessions of gains in an extremely volatile trading session ahead of the weekly Nifty expiry tomorrow."
He further said that with the start of quarterly earnings for the April-June quarters, traders will prefer to wait and watch for the next move.
Deepak Jasani, Head of Retail Research at HDFC Securities, said that major Asian markets closed on a mixed note while European indices like the FTSE, DAX and CAC ended lower.
"Technically, with the Nifty correcting, traders will need to watch if the Nifty can now hold above the immediate support of 10,677, else a further correction is likely," he said.
On Wednesday, the Nifty50 on the National Stock Exchange closed at 10,705.75, lower by 93.90 points or 0.87 per cent from the previous close of 10,799.65 points.
The BSE Sensex closed at 36,329.01, lower by 345.51 points or 0.94 per cent from its previous close of 36,674.52.
It had opened at 36,738.38 and touched an intra-day high of 36,828.43 and a low of 36,234.17 points.