Global indices, profit reservation pulls stocks down
Bombay: Negative global indices, along with profit taking, pushed the Indian stock market down on Thursday.
Weak global indices triggered profit reservation. Additionally, the sell-off was widespread as most sector indices on the two key indices closed in the red.
The S&P BSE Sensex closed at 52,568.94, down 485.82 points, or 0.92%, from its previous close of 53,054.76.
It had opened at 53,065.69 and hit an intraday high of 53,103.03 and a low of 52,428.84 points.
Likewise, the Nifty50 on the National Stock Exchange closed at 15,727.90, down 151.75 points, or 0.96%, from its previous close.
âTechnically, support for Nifty is at 15,635. While resistance at 15,900 is proving to be a difficult issue to resolve,â said Devarsh Vakil, deputy director of retail research at HDFC Securities.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said: âNationally, Nifty ended in large losses as profit recognition pulled the market down even though global indices remained negative.
Sentiments were also affected after rating agency Fitch lowered India’s GDP outlook for fiscal year 22 to 10% from 12.8% earlier, expecting a slow recovery after the second wave of Covid-19. “
Geojit Financial Services Research Director Vinod Nair said: âThe pessimistic global indexes rocked the morale of Dalal Street with selling pressure seen across all sectors amid high volatility. Global markets were deep down. in the red, overshadowing weakness in Asian markets following enlargement Crackdown on Chinese technology and concerns about the country’s economic recovery. “
“As we enter the FY22 first quarter earnings season, early releases from the IT industry and a number of lucrative IPOs will be the focus for the weeks to come.”