Stock indices retreat from record levels on profit booking
The 30-share index touched its all-time intra-day high of 41,120.28 before closing down by 67.93 points or 0.17 per cent at 40,821.30.
The broader Nifty of the National Stock Exchange also soared to a new peak of 12,132.45 in day trade before giving up gains to end lower by 36.05 points or 0.30 per cent at 12,037.70.
Bharti Airtel was the biggest loser among Sensex stocks, dropping by 4.34 per cent after ICRA downgraded the long-term rating of the company due to higher-than-anticipated provision pertaining to the Supreme Court judgement on dues payable towards license fees on adjusted gross revenues (AGR) as well as spectrum usage charge in the latest quarterly results.
Key IT stocks TCS and Infosys also dropped by 1.6 per cent and 1.05 per cent, respectively, as investors preferred to book profits at high levels. HCL Tech fell by 1.29 per cent.
Auto stocks also declined due to growth concerns. Maruti fell by 1.52 per cent, M&M by 1.67 per cent and Tata Motors by 1.36 per cent.
PowerGrid dropped by 2.26 per cent, Sun Pharma by 1.75 per cent,
Fitch group firm India Ratings and Research said that Indian economy may have slowed for the sixth consecutive quarter in July-September to 4.7 per cent while lowering its GDP growth forecast for the current fiscal for the fourth time.
"Market elevated to a record high coupled with global cheer on trade deal and domestic earnings revival expectation. However, volatility ahead of derivative expiry, political drama and caution on upcoming GDP data led investors to book some profit," Vinod Nair, Head of Research at Geojit Financial Services
Rising foreign inflows and confidence that government will address the fiscal gaps through divestment can maintain the buoyancy in the market, he added.
"Profit booking was clearly on investors' radar ahead of expiry and before the crucial GDP data due on Friday as investors avoided taking long positions," Paras Bothra, President of Equity Research, Ashika Stock Broking, commented.
Among the gainers, ICICI Bank rose 2.26 per cent, IndusInd Bank by 1.46 per cent, Tata Steel by 1.17 per cent and ITC by 0.52 per cent.
Sectorally, BSE telecom index plunged 4.93 per cent, followed by teck, IT, capital goods, industrials, auto, realty and power indices that declined up to 1.95 per cent.
However, BSE bankex, finance and FMCG indices closed in green.
Broader BSE midcap and smallcap indices declined up to 0.79 per cent at close.
Dhiraj Relli, MD & CEO, HDFC Securities said though macros have still not turned positive and corporate earnings growth remains sluggish, investors are enthused by ample liquidity in the system driving transmission, gradual normalisation of risk appetite of banks, unsold housing inventory beginning to correct, PSU banks being recapitalised, NPA cycle peaking out and base becoming easier post December quarter.
On the currency front, the rupee appreciated 20 paise (intra-day) against the US dollar to 71.53.
Brent futures, the global oil benchmark, rose 0.18 per cent to USD 62.73 per barrel.
Among Asian markets, Shanghai and Tokyo ended higher while those in Hong Kong and Seoul settled lower. Stocks in Europe were trading on a mixed note. ANS MR