Sensex, Nifty retreat after touching record highs

Vijay C Roy

Chandigarh, June 10

Benchmark equity indices hit their all-time high levels in early trade on Monday, with the Sensex breaching the 77,000-mark for the first time in today’s intra-day deals. Similarly, the NSE Nifty 50 index zoomed past 23,411 for the first-time ever.

It is worth noting that the benchmark indices have gained around 7 per cent so far this calendar year 2024.

However, after rallying, the indices closed at marginally down in highly volatile trade on Monday weighed by IT and some select heavyweight shares like Infosys, Maruti Suzuki, Bajaj Finance and HDFC Bank.

The BSE Sensex ended 203 points, or 0.27 per cent to settle at 76,490, while the Nifty50 dipped 31 points or down 0.13 per cent to settle at 23,259. At the closing, sectors such IT, metal and oil & gas were down. While sectors such as realty, healthcare and power were up.

On being asked about the reasons behind rally, analysts are of the view said the equity benchmark indices climbed record highs in trades on Monday, in anticipation of continued reforms as Prime Minister Narendra Modi-led National Democratic Alliance resumed its term for the third consecutive time at the centre.

According to stock analysts, the domestic benchmark indices opened on a positive note, but after an initial spike, Nifty witnessed consolidation within a narrow band and finally settled the day on a negative note at 23,259.

Experts said the Bank Nifty index opened on a flat note and maintained strength in the first half; however, in the second half, the index witnessed profit booking and finally settled the day on a flat to negative note at 49,781 levels.

“Technically, the index registered a record high of 23,411.90 and found trend line resistance, leading to profit booking. Thus, as long as the index remains below 23,412, profit booking can’t be ruled out. If the index sustains above 23,412, then the rally could extend to 23,700-23,800 levels…,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates Ltd.