Profit booking, return of COVID-19 norms drag markets lower

MUMBAI: Reimposition of certain travel restrictions in few states along with investors' disappointment over the ambiguity surrounding the COVID-19 vaccine's availability in the domestic market dragged key the Indian equity markets lower on Wednesday. The three-sessions long gaining streak of both the S&P BSE Sensex and the NSE Nifty50 came to grinding halt as investors booked profits.

Analysts cited panicked selling on the economic repercussions that reimposition of some norms to curb COVID-19 infections might have. Besides, the domestic indices mimicked their overseas counterparts as heavy selling was witnessed in Asian and European markets as well.

NSE Nifty50 suffered two bouts of selling pressure which were in line with the selling spree in Asian and European markets.

However, volumes on the NSE were in line with those of the previous session. Among sectors, PSU Bank index ended in green, while realty, banks, telecom, pharma, IT and auto indices were main losers.

The Nifty50 on the National Stock Exchange (NSE) lost 196.75 points, or 1.51 per cent, to close at 12,858.40 points.

Similarly, the S&P BSE Sensex ended at 43,828.10 points — down 694.92 points, or 1.56 per cent — from its previous closing.

"Global Markets paused for breath after opening steady after yesterday's global 'melt-up,'," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Markets may struggle to rise from here ahead of tomorrow's Thanksgiving holiday in the US and Guru Nanak Jayanti holiday in India on Monday, with a further uplift in month-end selling pressure now expected."

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "Indian equity market snapped its three days gaining streak to end in loss, despite touching new record high in the morning session." (IANS)

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