Benchmark indices erased intra-day gains in last one hour of trading on Monday
The last one hour of trading on Monday, May 26, witnessed the benchmark indices erasing the intra-day gains to end the day flat-to-negative; largely because of the plunges in the stock of property developers, as well as energy and consumer durables firms.
Specifically speaking, Sensex breached nearly 25,000 intra-day on Monday, closing precisely at 24,716.88, which reflected a gain of 23.53 points, or 0.1 percent. Earlier during the day, the Sensex touched an intra-day high of 25,175.22. The Nifty ended at 7,359.05 on Monday, marking a fall of 8.05 points or 0.11 percent from the previous close.
About benchmark indices having erased intra-day gains, market experts said that profits were apparently booked by traders ahead of the swearing-in of the new Prime Minister, Narendra Modi; and, amid speculations, waited for clarity on the Cabinet ministers.
Meanwhile, after a sharp run-up in recent months, selling pressure was witnessed in the broader market; with both BSE Mid-cap and Small-cap indices ended down more than 2 percent. Last week, the two indices had recorded a gain of between 11.5 percent and 16 percent.
Noting that “the market had been continuing the celebration ever since the NDA got a clear majority,” Motilal Oswal Financial Services’ Market Strategy VP Rikesh Parikh said: “After a sharp rally, a correction on account of profit-booking was largely expected and it is healthy from market point of view.”
Source: The Financial Express
Motilal Oswal, Motilal Oswal Financial Services, Motilal Oswal Group, Motilal Oswal Private Equity Advisors Pvt. Ltd, Motilal Oswal Real Estate
