Markets Lose Early Gains Amid Profit-Booking: Sensex Marginally Down, Nifty Below 24,600

The domestic equities market on Monday ceded all gains it yielded in the morning amid profit booking. After opening 143 points higher on August 19 amid positive global cues, the BSE Sensex started losing the gains as the day progressed in a volatile trade due to profit-booking, mainly in auto stocks. However, oil stocks gained momentum with the reduction in windfall tax on crude oil.

On Monday, the BSE Sensex finally ended the day with a fall of 12.16 points to settle at 80,424.68, while the NSE Nifty was marginally up by 31.50 points at 24,572.65.

In the morning, the Sensex opened 143.48 points higher at 80,580.32, while the NSE Nifty was up 71 points at 24,612.15.

“The Indian market failed to catch up the initial gains as there is a degree of profit booking witnessed in auto stocks due to a slowdown in demand. However, oil stocks gained momentum with the reduction in windfall tax on crude oil. The recent healthy US economic data diminished the likelihood of a US recession, while a slide in the dollar index supported the hypothesis of a rate cut in the September FOMC meeting,” Vinod Nair, head of research, Geojit Financial Services, said.

Among the 30 Sensex shares, 18 closed in the green. Tata Steel, TCS, NTPC, JSW Steel, and Asian Paint were the top gainers rising up to 2.94 per cent. However, among the laggards were Mahindra & Mahindra, IndusInd Bank, Axis Bank, Bharti Airtel, and Tata Motors falling up to Rs 2.65 per cent.

On the BSE, the advance-decline ratio was nearly 2:1, with 2,709 shares closed in green and 1,317 scrips in the red.

“The Nifty remained rangebound throughout the day, appearing to pause before the next rally. The index closed above the recent consolidation for the second consecutive day. The trend likely favors the bulls as long as it stays above 24,300. On the higher end, the Nifty might move higher, with resistances placed at 24,750-24,800,” Rupak De, senior technical analyst at LKP Securities, said.