On Monday, India’s Nifty 50 and Sensex stock indices reversed early gains after inching closer to fresh record highs on profit-taking at higher valuations, as wider peers rallied to record levels.
The benchmark S&P BSE Sensex (.BSESN) declined 0.24% to 63,235.07, while the blue-chip Nifty (.NSEI) fell 0.27% to 18,775.30 at 12:57 p.m. IST.
Both indexes rose 0.30% earlier in the session, with the Nifty 50 getting within 10 points of the record high of 18,887.60.
High-weightage financials (.NIFTYFIN) lost 0.3% as eight 13 major sectoral indexes fell.
Midcaps (.NIFMDCP100) and small caps (.NIFSMCP100) surpassed their benchmarks, climbing over 0.6% to record highs.
“There is nervousness in domestic equities near record high levels due to concerns over high valuations and monsoons,” said G Chokkalingam, founder and head of research at Equinomics Research Pvt.
“While positive triggers such as slide in inflation, fall in crude oil prices and strong macroeconomic fundamentals are in place for a sustained rally, monsoon rains could decide the near-term trajectory of the benchmarks.”
Larsen & Toubro (LART.NS) climbed 2.24% to a new record high and was the top Nifty 50 gainer after Macquarie confirmed its “buy” recommendation, citing a solid growth outlook after the business was the lowest bidder for a key bullet train deal.
Hero MotoCorp (HROM.NS) was a top Nifty 50 loss, losing nearly 2%. The two-wheeler maker’s shares have plummeted for four sessions due to a corporate affairs ministry investigation into potential fund misappropriation.
In anticipation of China’s rate decision on Tuesday and Fed Chair Powell’s congressional hearing on Wednesday and Thursday, global markets were generally weaker.
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