Key indices pare early losses, end lower on profit booking

Mumbai: Equity benchmark indices Sensex and Nifty buckled under heavy selling pressure to sink below record high levels on Wednesday, tracking deep losses in metal, auto and IT stocks amid widespread profit booking after recent gains. Rising uncertainty over interest rate cut by the US Federal Reserve also added to the weak trend in domestic equities, traders said.

The 30-share BSE Sensex opened 129.72 points higher to hit a fresh all-time high of 80,481.36. However, the index soon tumbled 915.88 points or 1.13 per cent to trade at 79,435.76. It finally closed lower by 426.87 points or 0.53 per cent at 79,924.77. NSE Nifty also hit its record 24,461.05 in opening deals but pared all gains to decline 291.4 points or 1.19 per cent to 24,141.80 intra-day. It dropped 108.75 points or 0.45 per cent to settle at 24,324.45. The market capitalisation of all BSE-listed companies fell by Rs1.22 lakh crore to Rs4,50,05,094.58 crore (Rs450.05 lakh cr or $5.39 trn).

“The Indian market experienced profit booking ahead of the upcoming earnings season. The expectations are muted, given the moderation in sales growth due to a slowdown in the world economy and consolidation in margins driven by high inflation. Additionally, the market is under temporary risk towards high budget expectations, which appears well factored in the last one month's rally,” said Vinod Nair, head (research), Geojit Financial Services.