After Tuesday’s 521-point rally, the stock market on Wednesday witnessed profit-taking by investors across the board with the Sensex taking a 66-point hit. A mixed trend in global markets failed to cheer up the domestic sentiment.
The 30-share Sensex resumed higher and ended at 27,984.37, down by 66.51 points, or 0.24 per cent. The 50-share Nifty went down 18.80 points, or 0.22 per cent, to 8,659.10.
“Profit booking dragged the market due to global volatility ahead of Thursday’s ECB meet. Expectations of a positive outcome from the GST Council did insulate us from the adverse effect of global volatility,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
However, the rupee extended its gains for the second session by adding 5 paise to close at 66.68 against the US dollar on sustained selling of the American currency by banks and exporters. “Robust capital inflows alongside a slightly weaker greenback too reinforced the dominance of the Indian rupee,” said a dealer.
Shreyash Devalkar, fund manager, BNP Paribas Mutual Fund, said, “It was a volatile day on the bourses as key benchmark indices oscillated between the positive and negative zones to finally close the day with marginal losses. Domestic markets took cues from positive Asian markets which rose, tracking overnight gains in US stock markets. Additionally, latest data showing a gross domestic product (GDP) growth of 6.7 per cent in the third quarter for China combined with a 6.1 per cent increase in industrial output in the month of September 2016, helped markets register modest gains.” While the FMCG, banking and media indices traded under selling pressure, IT, metals and pharmaceutical indices traded with gains.
According to Jayant Manglik, president, Religare Securities, after flat start, Nifty hovered in a range till the end while movement on the stock specific front continued and that kept the traders busy. Smallcap counters remained on the traders’ radar. However, mostly sectoral indices fell in line with benchmark and ended flat.