regular-article-logo Thursday, 23 May 2024

BSE Sensex scales 56000-mark for first time

Snapping its four-session record-setting spree, the 30-share benchmark closed 162.78 points, or 0.29 per cent, lower at 55629.49

Our Bureau Mumbai Published 19.08.21, 01:21 AM
Representational image.

Representational image. Shutterstock

The BSE Sensex scaled the 56000-mark for the first time on Wednesday but finished in the red following a late sell-off as investors booked gains in banking, finance and IT stocks.

Snapping its four-session record-setting spree, the 30-share benchmark closed 162.78 points, or 0.29 per cent, lower at 55629.49. It touched an all-time peak of 56118.57 during the session.


Similarly, breaking its seven-day winning streak, the broader NSE Nifty declined 45.75 points, or 0.28 per cent, to 16568.85. It touched a record intra-day peak of 16701.85.

“Succumbing to profit-booking, the Indian market gave away its gains. Bleeding banking, realty and metal stocks dragged while midcaps provided some relief but the broad trend was weak.

“European markets traded cautiously as Eurozone inflation accelerated to 2.2 per cent in July, beating ECB estimates of 2 per cent owing to a spike in energy prices.

“The markets are awaiting the US Fed meeting minutes to provide some direction on future policy, which is expected to showcase its current accommodative policy in line with the latest policy statement,” said Vinod Nair, head of research at Geojit Financial Services.

Shrikant Chouhan, executive vice-president, Equity Technical Research at Kotak Securities, said: “The market had been rallying sharply over the past few sessions and hence investors booked some profit today, but not before key benchmark indices hit fresh record highs in early trade. In the near future, the Nifty may consolidate between 16420 to 16700 levels.”

Nagaraj Shetti, technical research analyst, HDFC Securities, said: The market seems to have started tiring at the new highs of 16700. But, there is no indication of any reversal pattern unfolding at the higher levels.”

S. Hariharan, head-sales trading, Emkay Global Financial Services, said: “The Nifty has out-performed Asian and EM peers over the last week, with a strong trend in passive foreign flows, as foreign funds have aimed to re-allocate weights from China towards India.

“Launches of domestic MF schemes have brought in fresh inflows of Rs 8,000 crore. Banks remain the predominant under-performing sector while IT has been an out-performer.”

Domestic benchmark indices, after witnessing record highs, gave up all gains as selling pressure in heavyweight financials, especially private banks, dragged the market, said Binod Modi, head - strategy at Reliance Securities.

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