• 15/08/2022 12:06 am

#Taking Stock: Weak global cues cap upside, investors book profit in pharma stocks

Top Nifty gainers included Tech Mahindra, SBI and HCL Technologies.

The Indian market saw profit-booking at higher levels on August 12. The Nifty50 snapped a six-day winning streak but managed to close above 113,00 levels. The S&P BSE Sensex also closed with minor losses after four days of gains.

The S&P BSE Sensex ended at 38,369, 37 points lower, while the Nifty50 finished 14 points lower at 11,308.

Muted global markets and doubts about fresh US stimulus capped the upside. Mixed sentiment dragged on Asian stocks, as sniping continued between China and the United States, a Reuters report said.

On the domestic front, India’s industrial output contracted to 16.6 percent in June as against a 1.3 percent growth year-on-year (YoY), as per the Index of Industrial Production (IIP) data released by the government on August 11.

“Indian benchmark indices closed out a volatile day flat, with a negative bias. Global cues added to the uncertainty with doubts emerging about the expected US stimulus measures and continuing US-China tensions,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

Profit booking continued in the pharma sector. Markets reacted uncertainly to global cues and it was likely to continue, he said. “The downside looks limited but investors are advised to remain cautious, considering the valuations of some of the stocks,” Nair said.

Sectorally, selling pressure was seen in healthcare, consumer durables, metal, and realty stocks, while some buying was seen in auto, public sector, and consumer discretionary stocks.

On the broader markets front, the S&P BSE Midcap index fell 0.26 percent and the S&P BSE Smallcap index was down 0.02 percent.

Top Nifty gainers included Tech Mahindra, SBI and HCL Technologies.

Top Nifty losers included BPCL, Hindalco, Britannia Industries and Kotak Bank.

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