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Bloomberg
India’s equity benchmark retreated from a record as an early rally in Asian equities faltered.
The S&P BSE Sensex lost 0.6% to 44,268.87 in Mumbai, while the NSE Nifty 50 Index declined by the same magnitude. Both slipped from all-time highs, as did the region-wide MSCI AC Asia Pacific Index, which was little changed.
“These levels could prove to be a resistence zone and there is every possibility we are witnessing investors book profits,†said Manish Hathiramani, a trader and technical analyst at Deen Dayal Investments in Kolkata.
Record net foreign buying so far this month through Monday has driven India’s stocks to new highs even as Asia’s third-largest economy heads for its first ever recession after the coronavirus pandemic hobbled business.
“We suggest taking opportunities to trade in quality names that are fundamentally strong and not get into other stocks, because there is an element of excess in the valuation of some companies,†said Deven Choksey, a strategist at KRChoksey Investment Managers Pvt in Mumbai.
The yield on the benchmark 10-year government bond was little changed at 5.88%, while the rupee was steady at 73.98 against the dollar.
Eighteen of 19 sector sub-indexes compiled by BSE Ltd fell, with a gauge of healthcare stocks dropping the most. Nineteen Sensex shares dropped, while 11 rose. HDFC Bank Ltd was among the biggest contributors to the index decline and dropped 1%; Kotak Mahindra Bank Ltd’s 2.1% fall was the steepest.