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Profit bookings as well as negative global cues broke India's key stock markets -- S&P BSE Sensex and NSE Nifty50 -- four day-long winning streak on Thursday.
Initially, both the key indices had a gap-down opening prompted by weak US markets on the previous day. Globally, Asian share markets slumped after Federal Reserve meeting minutes pointed to a faster-than-expected rise in US interest rates due to concerns about persistent inflation. Similarly, European stocks opened with losses, as overseas traders had their first opportunity to react to minutes from the last Federal Reserve interest-rate setting committee. On the domestic front, volumes on the NSE were a little higher than recent average. Amongst sectors, telecom index gained the most while realty and IT fell the most. Consequently, the Sensex and Nifty settled at 59,601 points and 17,748 points, respectively, down 1.03 per cent and 0.99 per cent from their previous close. "Nifty fell as expected after a strong four day up-move. However the advance decline ratio is still at 1:1 suggesting broad market strength amidst selling in index heavyweights," said Deepak Jasani, Head of Retail Research, HDFC Securities. "Local traders are accumulating mid and smallcap stocks ahead of the Union budget and Corporate results for Q3FY22." According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "While the market trend might be volatile in the near term on account of potential risk from Omicron variant, upcoming budget and fragile global cues, in the long run, strong earnings delivery along with positive macro-economic data would hold the key to drive markets." In addition, S. Ranganathan, Head of Research at LKP Securities said: "The day witnessed a gap-down opening on the back of weak global cues and hawkish FOMC minutes which saw the US 10-year yield rising to 1.7 per cent." "Bulls were a bit restrained on the back of rising Covid cases and its impact on the fourth quarter corporate performance since it happens to be an important quarter for India Inc. The IT and Oil & Gas Index led the fall with cement stocks too witnessing profit taking." --IANS rv/skp/ ( 360 Words) 2022-01-06-20:18:01 (IANS)
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