Markets reduce early gains on profit booking

Mumbai: Benchmark BSE Sensex reversed early gains to close down 304 points on Wednesday on profit-taking in banks, financials and some IT stocks after a recent surge. The BSE 30-stock barometer opened higher and rose further to 58,416.56 in line with gains in Asian equities. However, profit taking by investors of recent winners and lazy buying at higher levels drove the index down over 420 points to the day’s low of 57,568.59. points in the second half.

The BSE Sensex ultimately closed down 304.48 points or 0.53% to settle at 57,684.82. During the day, it lost 420.71 points or 0.72% to 57,568.59. The broader NSE Nifty fell 69.85 points or 0.4% to end at 17,245.65 with 29 of its shares ending in red.

“The domestic stock market has been stuck in a range for the past few days amid rising volatility. Despite opening in the green, follow-up buying was missing at higher levels. This led to downward pressure in the second half of the day,” Siddhartha said. Khemka, Manager (Retail Research), Motilal Oswal Financial Services Ltd.

“After the recent rally, the market is turning cautious. Volatility is back due to inflationary pressures triggered by supply constraints. Covid in some parts of the world, war and high prices are impacting earnings growth, which may lead to a downgrade in the outlook,” said Vinod Nair, Head (Research) at Geojit Financial Services.