Mumbai, India (BBN) – After yesterday’s strong momentum, powered by the Budget proposals, the benchmark BSE Sensex fell about 62 points in late morning trading today due to a rush to take profit amid weak Asia cues.
The NSE Nifty broke below the key 8,700—mark, reports The Hindu Business Line.
The 30—share BSE index dropped 61.71 points, or 0.22 per cent, to 28,079.93, with metal, auto, capital goods, IT and realty stocks feeling the squeeze.
The gauge had rallied 486 points yesterday, spurred by a series of market—friendly budget moves.
The NSE Nifty went below the 8,700—mark by falling 28.40 points, or 0.33 per cent, to trade at 8,688.
Shares briefly hit their highest since late October, although they were unable to build on Wednesday’s gains after the government unveiled a budget to help the poor with hikes in spending and cuts in taxes.
“There is some consolidation after the moves we saw yesterday. In the longer term, the market remains extremely positive,” said Gaurang Shah, vice president, Geojit BNP Paribas.
Markets would also remain supported as the impact of a ban on higher value banknotes eases, analysts said.
With the Budget out of the way, the focus turns to RBI’s monetary policy to be released next week, they added.
ITC Ltd rallied as much as 3.8 per cent to a record high after the budget proposed a lower-than-expected increase in excise duty on some cigarette categories.
AUTO STOCKS SLIDE
Auto stocks dropped on Thursday after reporting lower January sales, with the Nifty auto index falling as much as 1.17 per cent.
Mahindra and Mahindra Ltd and Tata Motors Ltd were down about 2 per cent each, among the top percentage losers on the NSE index.
Asian shares meanwhile hit four-months highs after the US Federal Reserve held interest rates steady on Wednesday, without giving a firm signal on the timing of its next rate move.
The US Dow Jones Industrial Average ended 0.14 per cent higher yesterday.
BBN/SK/AD