Profit booking, global cues drag market lower; FMCG stocks fall

MUMBAI: Profit booking, along with global cues, pulled the key Indian equity indices lower on Wednesday.

Accordingly, the key indices, after hitting fresh all-time high levels, were dragged lower by heavy selling in IT and FMCG stocks amid mixed global cues.

However, the S&P BSE Sensex had opened at an all-time high of 48,616.66, and the Nifty50 on the National Stock Exchange touched a new record of 14,244.15 points.

Afterwards, the Indian benchmark equity indices witnessed profit booking.

Globally, Asian shares ended mostly lower on Wednesday as swelling virus counts, Hong Kong crackdown and China-US tensions weighed on sentiments.

Besides, European stocks were steady early on Wednesday but US stock futures slipped as investors closely monitored the Georgia elections, in which the Democrats moved closer to a Senate majority.

Among sectors, metals, realty and cement gained the most while IT and FMCG fell the most. Broader market indices — smallcap and midcap indices — outperformed the Nifty.

Consequently, the NSE Nifty50 closed at 14,146.25 points, lower by 53.25 points, or 0.38 per cent, from its previous close.

The BSE Sensex also receded during the day's trade. It closed lower by 263.72 points, or 0.54 per cent, to 48,174.06 points from its previous close. "Nifty has corrected after 10 days of rise. However the fact that it did not close at its intra day low is a consolation," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"The outcome of the US elections could have an impact on the US markets and then on Indian markets. As long as the 13985 level on the Nifty is not breached, this remains a buy-on-dips market."

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "Volatility needs to cool down below 20 zones to support the bullish market setup and fuel the next rally with the higher market base."

"Going ahead, the global cues will be watched closely for the further trend in the market. Rising cases of COVID in the UK and EU can turn a spoil sport with increasing cases of lockdowns going forward." (IANS)

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