Sensex, Nifty Lose Steam After Hitting Fresh 52-Week High
Indian stocks fell for a 3rd time this week, as indices pulled back from 52-week high.
Closing Bell
Indian shares declined for a third time this week after some investors deemed the run up in key equity benchmarks overdone.
The S&P BSE Sensex swung in a 360-point range before closing 0.5 percent lower at 28,839. Meanwhile, the NSE Nifty index lost 0.6 percent to 8,899. This after the 50-share index rose as much as 0.5 percent intraday to 8,992 – a fresh 52-week high.
The market breadth turned firmly in favour of the sellers by end of trade. About 1,164 stocks declined, 323 advanced and 58 remained unchanged on the NSE.
It is a normal profit taking which may extend further; however, the downside also seems capped. At the same time, stocks may witness volatile swings during the consolidation phase so traders should remain extra cautious in stock selection and focus on trade management.Jayant Manglik, President, Retail Distribution, Religare Securities.
“This has been liquidity-driven and not a valuation-based rally,” said Mayuresh Joshi, fund manager, Angel Broking adding, “eventually there will be catch up happening.”
Be that as it may, Joshi said the correction is unlikely to be very sharp as there will be buyers at lower levels. He said for the Nifty to take out 9,000 decisively banks, autos and IT as a pack need to fire on all cylinders. “Investors can stay invested with a long-term perspective and keep investing in a staggered manner,” he told BloombergQuint in a phone conversation.
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