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Markets slip from record highs on profit-booking, global risks; log 3rd weekly gains

Profit-booking in recent gainers coupled with disappointing results from SBI also took a toll on trading sentiment, brokers said.

PTI | Mumbai |

Equity indices eased from lifetime highs today as bulls took a breather after a string of record-setting sessions, while a rout in the Turkish lira reverberated through global markets, denting risk appetite.

Profit-booking in recent gainers coupled with disappointing results from SBI also took a toll on trading sentiment, brokers said.

SBI was the biggest loser in the Sensex pack, diving 3.79 percent after the lender reported a hefty loss of Rs 4,876 crore for the June quarter due to rising bad loans.

Global equity and currency markets reeled after the Turkish lira plunged 12 percent against the US dollar, stoking concerns about the macro stability of emerging economies.

The 30-share Sensex, after opening a shade higher at 38,050.07, quickly slipped below the 38,000-mark. It finally finished at 37,869.23 — down 155.14 points, or 0.41 percent.

The NSE Nifty too lost 41.20 points, or 0.36 percent, to finish at 11,429.50.

However, both the key indices finished with gains for the third week in a row.

The BSE Sensex recorded a rise of 313.07 points, or 0.83 percent, while the NSE Nifty advanced 68.70 points, or 1.01 percent, this week.

Meanwhile, domestic institutional investors (DIIs) sold shares worth a net Rs 85.39 crore, while foreign portfolio investors (FPIs) bought equities worth Rs 370.68 crore yesterday, provisional data showed.

“Bulls are taking a breather after consecutive days of the rally as investors used this opportunity to book their profits due to weak global cues.

“Positive expectation on domestic IIP data and rise in FII inflow will add cues for market direction. Investors are also keen on upcoming CPI and WPI inflation data in the context of volatility in rupee and oil price. PSU banks sank on concerns of increasing provisions,” said Vinod Nair, Head of Research, Geojit Financial Services.

Other Sensex laggards included Sun Pharma 3 per cent, Vedanta 2.97 per cent, Tata Motors 2.82 per cent, Power Grid 1.82 per cent, L&T 1.67 per cent, Tata Steel 1.63 per cent, Coal India 1.48 per cent, ICICI Bank 1.44 per cent, Reliance Industries 1.15 per cent and Bajaj Auto 1.11 per cent.

Bucking the trend, Hero MotoCorp rose 1.41 percent, M&M 1.26 percent, TCS 0.98 percent, ITC 0.94 percent and Kotak Bank 0.71 percent, among others.

Sector-wise, the BSE metal index was the weakest of the lot, dropping 2.01 per cent, followed by PSU 1.36 per cent, capital goods 1.18 per cent, infrastructure 1.08 per cent, healthcare 1.04 per cent, power 0.99 per cent, bankex 0.80 per cent, oil and gas 0.25 per cent and realty 0.15 per cent.

Consumer durables rose 0.79 per cent, IT 0.50 per cent, teck 0.34 per cent, auto 0.26 per cent and FMCG 0.09 per cent.

The broader markets also faced selling pressure. The BSE mid-cap index declined 0.80 percent while the small-cap gauge fell 0.78 percent.

Shares of Jet Airways plunged 8.39 percent after the company deferred announcing the June quarter numbers.

In Asia, Japan’s Nikkei fell 1.33 percent and Hong Kong’s Hang Seng slipped 0.88 percent, while Shanghai Composite Index edged up 0.03 percent.

In the eurozone, Frankfurt’s DAX was down by 1.56 percent, while Paris CAC 40 shed 1.14 percent in their late morning deals. London’s FTSE fell 0.66 percent.