New Delhi, India (BBN) - The BSE Sensex and the 50-share Nifty traded flat on Wednesday after a record setting rally that saw the benchmark indices register successive all-time highs over the last three sessions.
The Sensex has gained over 1,500 points since Friday, while the Nifty is up 450 points or 8 per cent over the same period, the NDTV reported.
Analysts say the possibility of a stable NDA government under BJP's prime ministerial candidate Narendra Modi is priced in at current values and markets should consolidate over the next couple of days.
"While the long-term uptrend remains intact, the market looks a bit stretched as it has discounted 260-270 seats for NDA now, so a rally would extend only if we get a positive surprise of say 300 seats," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance. "The market had wind of exit polls' results and therefore had run nearly 5 percent in two days before that."
Overseas investors bought cash shares worth Rs. 2,026 crore on Tuesday, their biggest purchase in many weeks. However, domestic investors sold a net Rs. 649 crore worth of cash shares on Tuesday.
Profit taking was seen in banking, energy, auto and capital goods stocks. State-run BHEL, which has gained 20 per cent over the last week, was the top Nifty loser, falling nearly 3 per cent.
Automaker M&M traded 2.3 per cent lower on the back of a block deal, while L&T, Tata Motors and Dr Reddy's Lab shares were down 1-2 per cent.
Jindal Steel and Power was the top Nifty gainer, up 1.8 per cent, while tobacco major ITC was up 1.7 per cent.
Independent analyst Sarvendra Srivastava said the Nifty is firmly trading above 7,000 and any corrections towards 6,900-7,000 should be bought. He continues to be bullish on markets and advised investors to hold 7,500 June calls.
As of 09.25 a.m., the Sensex traded 42 points lower at 23,829, while the Nifty was down 5 points at 7,103.
BBN/SSR/AD-14May14-12:35 pm (BST)