Indian markets witnessed profit booking as both Sensex and Nifty climbed fresh record highs in the morning trade before diving.
The S&P BSE Sensex hit a fresh record high of 39,487.45 while the Nifty50 rose to a life high of 11,856.15 in the early trade.
The final tally on D-Street – the S&P BSE Sensex dropped 135 points to 39,140 while the Nifty50 closed 34 points lower at 11,752.80.
Weak manufacturing surveys from Asia and Europe stoked fears of a slowdown in global growth, adding to profit taking ahead of the long Easter weekend putting breaks on the rally in Asian markets.
Indian markets will also remain shut on Friday, April 19 on account of Good Friday.
The profit booking was led by a decline in financials after Jet Airways suspended operations temporarily due to lack of funding after lenders refused to infuse Rs 400 crore in interim funding. The airline owes about Rs 9,000 crore to its lenders.
Nifty Bank also hit a record high of 30,669.80 but then witnessed profit taking towards the close of the trade. The fall in the index was led by losses in Yes Bank, Bank of Baroda, PNB, IndusInd Bank, SBI and Federal Bank.
Analysts call it a routine profit taking and the bullish trend still remains intact on the upside. One thing that investors should avoid doing is going short on the market or trading with heavy leverage. The best strategy is to stay with the trend, suggest experts.
“Overall the trend still remains strong for the short as well as medium term. What we saw today was just routine profit taking and not an intermediate top. The index was trading in a narrow band of 11,550 to 11,700 on the upside. The next target which we are seeing is upwards of 11,950,” Jay Thakkar, AVP – Equity Research at Anand Rathi told .
Stocks in news:
Wipro rose 1.3 percent despite the company reported a 1 percent sequential fall in fourth quarter consolidated profit at Rs 2,483.5 crore on weak revenue growth.
Shares of SpiceJet and InterGlobe Aviation rallied in intraday trade as Jet Airways suspended its operations after banks rejected the debt-laden carrier’s request for emergency funding. At the end of the day, SpiceJet rose 2.6 percent, and InterGlobe Aviation slipped 1.8 percent.
Star Cement rose 7 percent after the company received Rs 174.48 crore towards its freight subsidy claims from the central government.
Shares of Sasken Technologies jumped 5 percent as company said it is going to consider buyback of shares on April 23, 2019.
Share price of CRISIL slipped 6 percent after the company declared poor numbers for the quarter ended March 2019.
Reliance Industries rose nearly 3 percent after a Japanese firm said it will acquire a strategic stake in six group companies.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust that controls Network18 Media & Investments Ltd.
European markets are trading lower as PMI data for the eurozone came below estimates.
Most of the Asian markets ended lower with Nikkei shedding 0.84 percent at 22,090.12 and Hang Seng falling 0.49 percent at 29,963.26.
Shanghai Composite slipped 0.4 percent to 3,250.20 and Kospi shed 1.43 percent at 2,213.77