Sensex opens peak again; succumbs to profit booking in early trades

Benchmark Sensex shares opened more than 200 points higher on Thursday but quickly pared initial gains on profit taking and traded in negative territory amid a mixed trend in global markets.

After opening at its high of 54,576.64, the 30-stock index turned flat, slipping 8.33 points or 0.02% to 54,361.44.

In a similar move, the broader NSE Nifty fell 8.95 points or 0.06% to 16,249.85 in early trade.

IndusInd Bank was the biggest loser in the Sensex pack, losing around 2%, followed by Titan, Tata Steel, M&M, Bajaj Finance and SBI.

On the other hand, Bharti Airtel, HCL Tech, Tech Mahindra and Kotak Bank were among the winners.

In the previous session, Sensex rallied 546.41 points or 1.02% to end at its new high of 54,369.77, and Nifty jumped 128.05 points or 0.79% to its all-time high of 16,246.85.

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Foreign Institutional Investors (FIIs) were net buyers in the capital market as they bought shares worth Rs 2,828.57 crore on Wednesday, according to provisional exchange data.

Domestic equities appear to be stagnating for now. The strong rebound in the market over the past two trading days was not broad-based and the strong rebound in heavy financials contributed to the rally, said Binod Modi Head-Strategy at Reliance Securities.

However, huge gains on mid and small cap stocks were visible, he said, adding that going forward, given the strong improvement in key economic indicators such as GST collection and the volume of auto sales, “we believe that the strong momentum of recovery in corporate profits can be maintained in the following quarters”.

Elsewhere in Asia, the Shanghai and Tokyo exchanges were trading with gains in mid-term trading, while Hong Kong and Seoul were in the red.

Stocks on Wall Street largely ended on a negative note in overnight trading.

Meanwhile, the international crude oil benchmark Brent rose 0.38% to $70.65 a barrel.