Wednesday, January 26, 2022
HomeUncategorizedSensex retreats from record, down 110 points on profit-booking

Sensex retreats from record, down 110 points on profit-booking

Snapping four days of gains, benchmark Sensex on Wednesday fell from record highs and ended 110 points down on profit-taking in power, metal and consumer durable stocks ahead of the release of industrial output and inflation data.

Trading was volatile and a widening of the country’s trade deficit in May amid mixed global cues also contributed to the cautiousness in domestic markets, say dealers.

Business was also marked by a technical glitch in the BSE’s index calculation system for about 20 minutes earlier.

The BSE 30-share barometer began higher and climbed to hit yet another record high of 25,735.87, but fell back due to profit-booking. It remained in the negative zone for the rest of the session to touch a low of 25,365.65. Sensex ended at 25,473.89, a fall of 109.80 points or 0.43 per cent.

The gauge had closed at an all-time peak of 25,583.69 after soaring to 25,711.11 in trade. In four days, it had gained 777.86 points before today’s drop.

Shares of RIL, ONGC, NTPC, Maruti, M&M, L&T, ITC, Sesa Sterlite and Coal India were among 17 Sensex losers.

The 50-scrip NSE Nifty after breaching the 7,700 level for the first time succumbed to profit-booking. It closed 29.55 points, or 0.39 per cent, down at 7,626.85. It had touched a low of 7,589.05 during the session.

Brokers said offloading of positions occurred ahead of the release of Consumer Price Index inflation data for May and Index of Industrial Production data for April due Thursday. Wholesale Price Index inflation data for May would be released on June 16.

Selling picked up after trade gap rose to a 10-month high of USD 11.23 billion in May even as exports grew 12.4 per cent.

“…Lack of further triggers, market may see some more profit booking. High volatility may be seen,” said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Sectorally, BSE realty index suffered the most by losing 4.21 per cent, followed by consumer durable index (2.99 per cent), Metal index (2.82 per cent), Power index (2.75 per cent) and Auto index (0.45 per cent) among others.

Bucking the trend, IT index ended 2.23 per cent higher after Infosys, TCS and Wipro rose. Healthcare index also rose 0.66 per cent.

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