After hitting multiple highs, Indian stocks post profit booking – ThePrint – ANIFeed

New Delhi (India), September 27 (ANI): Registering highs for the sixth consecutive session, Indian stock indices closed the weekly session in the red, which is likely to be attributed to profit booking.

It closed at 85,571.85 points, down 264.27 points or 0.31%. Nifty closed at 26,175.15 points, down 40.90 points or 0.16 percent.

Among sectoral indices, banks, financial services, media and real estate suffered the biggest losses, NSE data showed.

“After the recent impressive rally, benchmark indices witnessed a sideways move today as investors took up profit booking at elevated levels,” said Vinod Nair, Research Director, Geojit Financial Services.

“Meanwhile, investors are eagerly awaiting the second-quarter earnings report, expecting earnings prospects to improve,” Nair added.

In particular, the monetary policy committee of the US Federal Reserve, by easing interest rates by 50 basis points, has provided fresh support to Indian equities.

Easing monetary policy in the US through interest rate cuts typically leads to capital flight to markets where interest rates are high. The more radical the reduction in interest rates in the US, the greater the tendency for capital to flee to alternative investment destinations, including India.

Continued purchases by foreign portfolio investors (FPI) also slightly supported stock indices. Foreign portfolio investors have increased their investments in India, hoping for better returns due to the interest rate differential.

As per data shared by NSDL, they have disposed of Indian shares worth Rs 488.22 crore so far in September. FPIs have been net buyers for the fourth month now.

“Sectors such as public sector banks, defense and railways, which had previously recorded large share, are gradually being eclipsed by weaker players such as pharma, private banks and mid-market IT. These sectors, which feature attractive valuations, are likely to lead the next phase of the market in the coming quarters,” said Krishna Appala, senior research analyst at Capitalmind Research. (OR)

This report is auto-generated from ANI news website. ThePrint is not responsible for its content.