Profit booking snaps 2-day winning streak

Benchmark stock indices closed lower on Tuesday due to profit taking by investors after a record-breaking rally and ahead of release of key inflation numbers. After a two-day rally, the 30-share BSE Sensex fell by 377.50 points or 0.54 per cent to settle at 69,551.03 points. During the day, it declined 484.68 points or 0.69 per cent to 69,443.85 points.

The broader Nifty scaled a new lifetime intra-day high of 21,037.90 points before closing below the 21,000 level. The 50-issue barometer declined by 90.70 points or 0.43 per cent to close at 20,906.40 points. On Monday, the BSE benchmark surged past the 70,000-level for the first time, reaching its record intra-day peak of 70,057.83.

Nifty had settled just below the 21,000 level at 20,997.10, its all-time closing high. “Following the recent impressive surge, the Nifty-50 has undergone a consolidation phase today due to anticipated elevated November inflation in India, driven by rising food prices, which may potentially delay RBI policy cuts. In contrast, the US inflation outlook remains stable, which could influence the upcoming US Fed policy,” said Vinod Nair, head (research), Geojit Financial Services.