Stock markets end 5-day winning run on profit-taking in IT stocks, weak global cues

Stock markets snapped their five-day winning run on Tuesday with the benchmark Sensex declining by 199 points due to profit-taking in IT and oil shares and weak global trends.

The BSE Sensex dropped by 199.17 points or 0.27 per cent to settle at 73,128.77.

The index opened lower but staged a recovery in late-morning deals to touch its all-time intra-day high of 73,427.59. The barometer therafter failed to hold onto gains due to profit-taking in the broader market and retreated by 367.65 points or 0.50 per cent to a low of 72,960.29.

The Nifty touched its all-time intra-day high of 22,124.15 before closing lower by 65.15 points or 0.29 per cent at 22,032.30.

  • Also read: Long-term outlook for Nifty50, Sensex: Ride the rally but watch out for long-term correction

In the last five days, the BSE benchmark rallied 1,972.72 points or 2.76 per cent, and the Nifty jumped 584.45 points or 2.71 per cent.

Among the Sensex firms, Wipro, HCL Technologies, NTPC, Reliance Industries, Infosys, IndusInd Bank, Tech Mahindra and Tata Consultancy Services were the major laggards.

IT stocks fell on profit-taking after rallying sharply in the past two sessions.

Tata Steel, Titan, Maruti, Larsen & Toubro, ITC and JSW Steel were among the gainers.

In Asian markets, Seoul, Tokyo and Hong Kong settled lower while Shanghai ended in the positive territory.

European markets were trading lower. The US markets were closed on Monday on account of Martin Luther King, Jr. Day.

“The broad market exhibited profit-booking following a good performance by the IT sector amid weak global cues. Investors are contemplating whether the current euphoria in markets has gone farfetched, especially with elevated domestic valuations in mid & small caps.

“FII flows are mixed due to a lack of fresh triggers. Oil prices stayed firm amid undeterred geopolitical tensions,” said Vinod Nair, Head of Research, Geojit Financial Services.

The BSE benchmark jumped 759.49 points or 1.05 per cent to settle at a new closing high of 73,327.94 on Monday. During the day, it zoomed 833.71 points or 1.14 per cent to reach its all-time peak of 73,402.16. The Nifty climbed 202.90 points or 0.93 per cent to settle at a new closing high of 22,097.45. During the day, it surged 221 points or 1 per cent to reach a lifetime intra-day high of 22,115.55.

Global oil benchmark Brent crude climbed 0.68 per cent to $78.68 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth ₹1,085.72 crore on Monday, according to exchange data.

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