Mumbai (TIP)- Benchmark equity indices Sensex and Nifty snapped their seven-day winning streak on Thursday, December 7, due to profit taking by investors after recent sharp gains triggered by negative cues from Asian markets. The 30-share BSE Sensex fell 132.04 points, or 0.19 per cent, to close at 69,521.69. The gauge hit the lowest intra-day level of 69,320.53. Broader index Nifty also declined 36.55 points, or 0.17 per cent, to settle at 20,901.15. Analysts said crude oil prices in international markets failed to boost sentiment amid selling pressure from foreign institutional investors even as traders stayed on the sidelines ahead of RBI’s monetary policy decision. The Reserve Bank of India is expected to maintain the status quo on the interest rate in its bi-monthly monetary policy decision to be announced on Friday. Major laggards among Sensex constituents included Bharti Airtel, Hindustan Unilever, Tata Steel and ITC. Power Grid, UltraTech Cement, NTPC and Titan emerged as winners.
As many as 17 shares of the 30-share Sensex ended the session in red, while 23 Nifty firms closed lower. According to Vinod Nair, Head of Research at Geojit Financial Services, the market took a breather as investors are in a wait-and-watch mode ahead of the monetary policy announcement.
“A better-than-estimated Q2 GDP growth, ease in global oil prices and drop in global bond yield will be the silver lining for the MPC. However, the expectation of a rise in domestic November inflation, drop in Rabi cultivation and increase in foodgrain prices will influence RBI to adopt a cautious approach in the short-term,” he said.
About the movement in Nifty, Rupak De, Senior Technical analyst at LKP Securities, said the index hovered within the bands of 20850-20950 as “sentiment remains somewhat cautious ahead of the RBI policy meet”.
“The near-term trend remains sideways to weak as long as it stays below 21000, a psychologically crucial level. A decisive breakout above 21000 might induce a resumption of the uptrend. Until then, we anticipate weakness over the near term,” De said.
Source: PTI
Tag: stock markets
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Stock markets snap seven-day winning run; Sensex falls 132 points
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Asian stock markets advance after new Wall Street high
Asian stock markets followed Wall Street higher on Wednesday after US inflation ticked up and Japanese machinery orders fell.
Shanghai, Hong Kong, Seoul and Sydney rose. Tokyo was off less than 0.5%.
Wall Street’s benchmark S&P 500 index closed 0.3% higher in choppy trading. Tech and consumer stocks gained on optimism the vaccine rollout will allow business activity to return to normal. Johnson & Johnson declined after US regulators suspended use of its single-dose vaccine to investigate possibly dangerous blood clots.
The US government reported consumer prices increased by a stronger-than-expected 0.6% in March, the fastest rate since 2012. Higher inflation normally fuels fears interest rates might be raised to keep prices stable, but the Federal Reserve has said the economy will be allowed to “run hot” to ensure a recovery is in place.
Traders “took the well-telegraphed inflation ‘pick-up’ in stride,” said Stephen Innes of Axi in a report. Market also are “seemingly unfazed” by the J&J suspension. The Shanghai Composite Index gained 0.2% to 3,401.72 and Hang Seng in Hong Kong advanced 1.2% to 28,850.00.