Indian shares decline on profit booking amid earnings rush

BENGALURU: Indian shares fell on Wednesday, dragged by broad slide across sectors, as investors booked profits on a nearly 5% rise in the benchmark Nifty 50 in fiscal 2024 so far, while weak global cues amid debt ceiling negotiations in the U.S. weighed.
The Nifty 50 was closed 0.57% down at 18,181.75, while the S&P BSE Sensex fell 0.60% to 61,560.64. Both indexes extended losses to a second consecutive session.
High-weightage financials and information technology (IT) led losses in the Nifty, falling 0.71% and 0.97% respectively.
“The market is witnessing profit booking, especially in heavyweights from higher levels,” said Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services.
“Some consolidation may not be ruled out given the sharp up-move in the last few weeks.”
The Nifty has risen 4.74% so far this fiscal, supported by a healthy results season and consistent buying from foreign institutional investors (FII), according to three analysts.
Vaishali Parekh, vice president – technical research at Prabhudas Lilladher, pegged 18,200 and 18,450 as the support and resistance levels for the benchmark.
Metal stocks lost almost 1% on concerns over demand recovery in China in light of weak macroeconomic data from the world’s largest consumer and producer of metals.
Realty and Media lost over 1% and 2% respectively, dragged by weak earnings of key constituents such as Oberoi Realty Ltd and PVR INOX Ltd.
Among individual stocks, Amber Enterprises Ltd and CrediAccess Grameen Ltd jumped more than 15% and 7% respectively, on strong March-quarter results, while LIC Housing Finance Ltd tumbled 6.14% on a profit slide.
Global equities were muted, as the ongoing debt ceiling negotiations in the U.S. and weak macroeconomic data from China dampened risk appetite. Asian markets were subdued.

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