Stock market slipped after reaching record high, Sensex fell 203 points

The Uncut

Mumbai. The major stock indices Sensex and Nifty closed lower on Monday after hitting record highs in early trade amid selling in shares of big information technology (IT) companies and HDFC Bank. During the day’s trading, the 30-share BSE Sensex crossed the 77,000 mark. However, at the end of trading, the index came under selling pressure and closed down 203.28 points or 0.27 percent at 76,490.08 points.

Earlier in the day, the Sensex jumped 385.68 points or 0.50 percent to reach a new record of 77,079.04 points. Similarly, the National Stock Exchange’s Nifty fell 30.95 points or 0.13 percent to close at 23,259.20 points. During the day’s trading, it rose 121.75 points or 0.52 percent to reach an all-time high of 23,411.90 points. Narendra Modi took oath as Prime Minister for the third term on Sunday. His cabinet includes 72 members. It is believed that in the third term, the government will focus on maintaining continuity.

Among the Sensex companies, Tech Mahindra, Infosys, Wipro, Bajaj Finance, Mahindra & Mahindra, HDFC Bank, HCL Technologies and Tata Consultancy Services saw a significant decline. On the other hand, UltraTech Cement, Power Grid, Nestle, NTPC, Tata Steel and Axis Bank shares remained in profit.

Prashant Tapase, Senior Vice President (Research), Mehta Equities Limited, said, “Volatility has returned to the market as the Sensex slipped from its new high. The index fell sharply at the end of trading amid profit booking in IT, metal and oil and gas stocks.” He said that the US data indicated that interest rate cuts would not happen soon, after which the market also remained sluggish due to weak global cues.

In the broader market, the BSE Smallcap index rose 1.04 per cent and Midcap gained 0.56 per cent. Sectorally, services rose 1.61 per cent, realty 1.34 per cent, commodities 1.28 per cent, utilities 1.11 per cent, healthcare 0.77 per cent and industrials 0.49 per cent. On the other hand, IT, auto, metal and technology sectors declined.

According to stock market data, foreign institutional investors (FIIs) bought shares worth Rs 4,391.02 crore on Friday.
Vinod Nair, Head of Research, Geojit Financial Services, said, “After the formation of the new government at the center, the Indian market is currently lacking new catalysts. This indicates that there may be some weakness in the market in the near future.” In other Asian markets, Japan’s Nikkei closed in profit, while South Korea’s Kospi declined. China’s Shanghai Composite and Hong Kong’s Hang Seng remained closed due to holidays. European markets were trading with a decline. Global oil benchmark Brent crude rose 0.18 percent to $ 79.76 per barrel.

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