Profit booking, global cues subdue equities; banking stocks down

New Delhi (IANS) Profit booking, along with global cues, subdued India’s benchmark equity indices on Wednesday after a sharp rise seen a day before.

However, optimism over lower Covid-19 cases as well as hopes on faster vaccination drive arrested any major decline.

Among sectors, realty, power and healthcare were the main gainers while telecom, metals, banks and auto were the main losers.

Globally, stocks slipped and cryptocurrencies sank as threat of unwanted inflation had investors shy away from assets seen vulnerable to any removal of monetary stimulus.

The S&P BSE Sensex ended at 49,902.64, lower by 290.69 points, or 0.58 per cent, from its previous close.

Similarly, the Nifty50 of the National Stock Exchange closed the day’s trade at 15,030.15, down 77.95 points, or 0.52 per cent, from its previous close.

“Nifty made a double top – the same as the previous day and later fell to enter the upgap area. Lower volume on May 19 suggests absence of enthusiasm on the part of traders at these levels, especially in the face of the negative inflation and commodity price data and release of US Fed minutes,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“The 14,938-14,967 zone will be the support for the Nifty while 15,137 will act as a resistance.”

Geojit Financial Services’ Head of Research Vinod Nair said: “The recent sharp rally has triggered some caution for the near-term.”

“The global market was tentative ahead of the announcement of Fed minutes, this was mirrored in the domestic market, though it is not expected to hawkish. Optimism gained from declining covid cases resisted a sharp correction in domestic market.”

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