Sensex, Nifty Slip As Investors Lock In Gains In IT Stocks
Indian shares fell on Thursday as IT stocks reversed course to trade lower as investors locked in gains in a sector that has helped drive a rally in the broader market so far this month.
- Last Updated: October 15, 2020, 11: 55 AM IST
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BENGALURU: Indian shares fell on Thursday as IT stocks reversed course to trade lower as investors locked in gains in a sector that has helped drive a rally in the broader market so far this month.
The NSE Nifty 50 index was down 0.36% at 11,928.25 by 0524 GMT, while the S&P BSE Sensex was down 0.37% at 40,642.77.
“It is more about booking profits from a sector that has been doing good lately… so you’re seeing some realignment in portfolio’s there,” Anand James, chief market strategist at Kochi-based Geojit Financial Services said.
The Nifty IT index slumped 2.7% on Thursday, after rallying nearly 6% this month on the back of strong quarterly results and buybacks.
Infosys Ltd, whose shares hit a record high earlier in the session, reversed course to trade 2.4% lower. The IT giant raised revenue outlook as robust demand for its digital services helped it beat quarterly profit expectations.
The Nifty bank index, however, overturned early losses to rise 0.4%. Shares of lenders Axis bank and State Bank of India were up 1.4% and 0.7%. India’s Supreme Court is set to hear the case on interest waiver on loans under moratorium on Nov. 2.
Meanwhile, Wall Street finished weaker on Wednesday after U.S. Treasury Secretary Steven Mnuchin said a fiscal stimulus deal would not be likely made before the November election.
“US stimulus expectations has been a driver lately, but markets are now weighing in the possibility of it being pushed beyond the elections, taking some zing out of the recent momentum from global equities,” James said.
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