Indian benchmark indices BSE Sensex and NSE Nifty 50 snapped an eight-day rally, ending in the red and giving up Thursday’s gains. BSE Sensex ended at 62,868, down by 415 points under the 63,000 level while NSE Nifty closed at 18,696, over 0.66% points lower from yesterday’s close. All of Nifty’s sectoral indices shifted between gains and losses, but Nifty Auto and Nifty FMCG were the biggest laggards. “The rally in the domestic market was halted by negative cues from global counterparts and broad-based profit booking in large caps. The correction in the market was led by auto stocks as the sales data came in lower than expected due to weaker exports and sequential de-stocking. Declining manufacturing activity in the US is proof that the central bank’s policy tightening has started to show results, which in turn will encourage the Fed to keep rate hikes at bay,” said Vinod Nair, Head of Research, Geojit Financial Services.
S Ranganathan, Head of Research, LKP SecuritiesWith IT stocks supporting the Bulls well this week, today we witnessed price action across select themes in the Small & Midcap space. On a day when Auto stocks dragged indices down post the monthly numbers, the street focused attention in the broader markets to segments like Tyres, Pipes & Sugar buoyed by positive newsflow as many stocks were keenly sought after in these pockets.
Also read: India manufacturing shows signs of stress, economists say
Rupak De, Senior Technical Analyst, LKP SecuritiesBears remained at the helm throughout the day as the benchmark index couldn’t pare the morning loss. However, the correction was limited to 0.62% by the end of the session. Over the near term, sentiment is likely to remain sideways, with 18,500-18,800 to be the crucial range. A decisive breakout from either band may induce a clean directional move in the market.
Amol Athawale, Deputy Vice President – Technical Research, Kotak SecuritiesAs the market was in an overbought zone after the recent upsurge, correction was due for some time and hence investors booked profit in a trading session marked by weak Asian and European cues. The recent GDP numbers and GST collections came in line with expectations, but global news flow will continue to dictate the market trend going ahead. The two immediate triggers – RBI’s credit policy next week and the US Fed meeting in mid-December on the rate front would determine the investors’ mood in the near term.”
