Sensex Turns Lower After Hitting Record High; IT Stocks Gain

The BSE Sensex and the broader Nifty hit a record high for a third straight day, but the bluechip indices turned sharply lower on profit booking. The Sensex fell as much as 232 points, while the Nifty was slumped over 70 points after a positive start. Recent gainers saw profit taking. The BSE Realty index slumped over 3.5 per cent. DLF was the top Nifty loser, down over 4 per cent, while Unitech lost around 7 per cent. Metals and power stocks were down 2 per cent, while energy shares traded 1.5 per cent lower. Banking stocks fell 1.1 per cent and PSU shares declined nearly 2 per cent. Sesa Sterlite, Tata Power and Hindalco traded with over 3 per cent losses. However, defensive stocks such as IT and healthcare saw buying interest. Both these sectors also gain from a weak rupee. Wipro was the top Nifty gainer, up over 2 per cent. Tech Mahindra, TCS and Infosys also gained over 1 per cent. Among drugmakers, Sun Pharma, Dr Reddy's and Lupin saw buying interest. Analysts have been expecting some correction for the past many days. Technically, markets are overbought, so a fall was likely, analysts added. Indian stock markets are up 21.4 per cent so far this year, outperforming a 5 per cent gain in the broader MSCI Asia-Pacific index excluding Japan. Mayuresh Joshi of Angel Broking told NDTV that investors with a two-year view should keep on buying stocks at dips. Overseas investors remained net buyers of Indian equities and bought cash shares worth Rs 537 crore on Monday. However, DIIs sold cash shares to the tune of Rs 490 crore. Technical analyst Sarvendra Srivastava says Reliance Industries should be a key driver for markets though the weakness in Bank Nifty is a concern. Mr Srivastava has a target of 7,800-8,000 on the Nifty. The Sensex hit an all-time high of 25,711, while the Nifty hit a high of 7,683 before turning lower. As of 10 a.m., the Sensex traded 159 points lower at 25,421, while the Nifty traded 56 points lower at 7,599.

Sensex Turns Lower After Hitting Record High; IT Stocks Gain

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