Sensex, Nifty snap 2-day winning run on profit-taking in IT, oil shares

Published on: 22 Jun 2023 at 05:34 PM

Published by: The fact news

Mumbai, June 22

Benchmark BSE Sensex retreated from record levels and closed lower by 284 points in a volatile trade on Thursday due to profit-taking in financials, IT and oil shares after a two-day rally and negative trends in the US and European markets. The 30-share BSE Sensex fell by 284.26 points or 0.45 percent to settle at 63,238.89 as 20 of its components declined.

The barometer touched a record intra-day peak of 63,601.71 in initial deals. However, the index faced volatile trends and declined 322.52 points or 0.50 percent to a low of 63,200.63 during the day.

The NSE Nifty closed lower by 85.60 points or 0.45 percent to end at 18,771.25, snapping its two days of gains. The index closed at its all-time high of 18,856.85 on Wednesday.

From the Sensex pack, Bajaj Finance, Tata Motors, Asian Paints, Power Grid, NTPC, Infosys, Nestle, Reliance Industries and UltraTech Cement were the biggest laggards.

Larsen & Toubro, Tata Steel, HDFC, Bharti Airtel, HDFC Bank and Mahindra & Mahindra were among the major gainers.

“A negative trigger, from the global perspective, is the Fed chief Powell’s statement in the Congressional testimony yesterday that ‘the process of getting inflation back to 2% has a long way to go’. This indicates further rate hikes, perhaps two more, in this rate hiking cycle,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In the broader market, the BSE midcap gauge fell 1.07 percent and smallcap index declined 0.64 percent.

All the indices ended in the negative territory, with power, falling 1.47 percent, utilities declining 1.16 percent, telecommunication (1.05 percent), commodities (0.98 percent), IT (0.91 percent), realty (0.88 percent), consumer discretionary (0.85 percent), energy (0.77 percent) and metal (0.68 percent).

“Apart from weak global market cues, the US Federal Reserve’s testimony that inflation would take longer to cool sent jitters amongst the investors as this would mean more rate hikes are in the offing.

“However, the highlight of the day was Sensex once again touching a new high before giving up gains due to profit-taking,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.

In Asian markets, Seoul ended in the green while Tokyo settled lower. Equity markets in Europe were trading lower. The US markets ended in negative territory on Wednesday.

Global oil benchmark Brent crude declined 1.39 percent to USD 76.05 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 4,013.10 crore on Wednesday, according to exchange data.