Benchmark stock indices Sensex and Nifty closed marginally lower on Monday after touching their new all-time highs due to heavy profit-booking and foreign fund outflows. The 30-share BSE Sensex closed at 85,641.90, down 64.77 points or 0.08 per cent. During trading, the Sensex had hit a record high of 86,159.02, up 452.35 points or 0.52 per cent.
Meanwhile, the 50-share NSE Nifty fell 27.20 points or 0.10 percent to 26,175.75. It rose 122.85 points, or 0.46 percent, to an all-time high of 26,325.80 during trading. The rupee on Monday closed 8 paise lower at 89.53 (provisional) against the US dollar due to strong market demand for the American currency.
Expectations of weak interest rate cut by RBI impacted the market
Markets slipped higher this week as hopes of an interest rate cut by the RBI faded after better-than-expected GDP growth in the second quarter, an expert said. Markets hit record highs as investors turned positive after India’s economy grew at a faster-than-expected 8.2 percent rate in July-September, the fastest growth in the last six quarters.
Condition of Sensex companies
Among the Sensex companies, Bajaj Finance, Sun Pharma, Trent, Mahindra & Mahindra, State Bank of India and Bajaj Finserv were the major laggards. At the same time, shares of Tata Motors Passenger Vehicles, Maruti, Bharat Electronics, Kotak Mahindra Bank, Adani Ports and HCL Tech registered gains.
There was caution in the market due to slowness in GST collection.
Vinod Nair, head of research, Geojit Investments Limited, said that after reaching new highs, the market remained in a limited range. Hopes of an interest rate cut by the RBI in December were dashed after better-than-expected GDP growth in the second quarter and a sharp decline in the rupee. There was a slight cautiousness in the market due to slowdown in GST collections due to low interest rates in November.
Decline seen in European markets
In Asian markets, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index closed in positive territory, while South Korea’s Kospi and Japan’s Nikkei 225 indices closed with losses. European markets closed with losses. American markets closed with gains on Friday.
The price of Brent crude increased to $ 63.60 per barrel.
The price of global oil standard Brent crude rose 1.96 percent to $ 63.60 per barrel. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 3,795.72 crore on Friday, while domestic institutional investors (DIIs) bought shares worth Rs 4,148.48 crore. On Friday, the Sensex closed at 85,706.67, down 13.71 points or 0.02 per cent. Nifty closed at 26,202.95 with a decline of 12.60 points or 0.05 percent.