Profit-booking puts breaks on bull run

Mumbai Benchmark stock indices BSE Sensex declined by 505 points at close while NSE Nifty settled lower at the 19,330 level due to profit-taking in financial, IT and oil shares after a record-breaking run and weak global trends.

The 30-share BSE Sensex fell sharply by 505.19 points or 0.77 per cent to close at 65,280.45 points as 25 of its constituents ended in red and five in green. The barometer moved between 65,175.74 and 65,898.98 during the day.

The broader Nifty of National Stock Exchange ended its eight-day winning streak, declined by 165.50 points or 0.85 per cent to settle at 19,331.80. As many as 44 Nifty shares declined, while six gained.

“The domestic market succumbed to profit-booking as heat waves from weak global markets hit the shore. Global equities declined due to a spike in US bond yields, fuelled by expectations of a prolonged high-interest rate environment following a sharp increase in US private payroll data,” Vinod Nair, Head (Research), Geojit Financial Services, said. Foreign Institutional Investors (FIIs) continued their buying activity as they bought equities worth Rs2,641.05 crore on Thursday, according to exchange data.

Among major Sensex shares, PowerGrid fell the most by 2.76 per cent. IndusInd Bank dropped 2.34 per cent, HUL by 2.23 per cent and NTPC by 2.04 per cent. ICICI Bank, HDFC Bank, HDFC, ITC, Infosys, L&T, Bajaj Finance, Kotak Bank, HCL Tech and Tech Mahindra were among the losers. On the other hand, Tata Motors rose the most by 2.94 per cent, followed by Titan which gained 1.26 per cent. Mahindra & Mahindra, SBI and TCS were also among gainers.

In the broader market, the BSE Midcap declined by 0.76 per cent to 28,999.02, while BSE Small dropped 0.28 per cent to 33,129.41.