The stock market of India had to witness selloff triggered by weekend profit-booking the share market investors. The BSE Sensex shed 215 points and closed at 40,359 levels while the Nifty-50 index dipped 54 points and closed at 11,914 levels. Bank Nifty index shed 238 points and closed at 31,111 levels.
Speaking on the current market sentiments Prakash Pandey, MD & CEO at Plutus Advisors said, "The selloff is mainly caused by the weekend profit-booking and I suggest stock market investors to take buy position in Bank Nifty at around 31,000 to 31,100 levels with stop loss at 30,800. Nifty is expected to go some deeper up to 11,800 levels — an ideal position to buy for the target of 12,100 and then 12,300-350 levels." He said that next rally in the stock market will be mainly caused by banking shares rally and those banking shares would be SBI, Axis Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and IndusInd Bank.
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Dr. Joseph K Thomas Head of Research, Emkay Wealth Management said, "The weakness in Banking and IT stocks was the major contributing factor behind dragging the markets down in today’s trading session. This has been the third consecutive session of key indices closing in the red, we believe it is largely an effect of profit booking in some key counters. The support received from the recent run-up in key telecom counters was also missing today. On the technical front, the level of 12,000 is seen as a key resistance by many market participants which adds up to the selling pressure. We believe post the short duration of profit booking, markets should reverse on a much more stronger footing."
IT stocks led the bloodbath at Dalal Street today as the BSE IT index went down 2.21 per cent after the Closing Bell. IT major TCS share price went down 2.32 per cent, shares of Zensar Technologies dipped 2.47 per cent, Infosys shares went down 2.91 per cent, Rolta India went off 1.56 per cent, Wipro stocks slipped 1.78 per cent, Cyient stock price went down 1.32 per cent while Hexaware Technologies stock price went down 1.84 per cent.
Tech stocks also witnessed heavy selloff on weekend profit-booking as the BSE Tech index went down around 2 per cent in the intraday trade. Tech major Bharti Infratel share price crashed near 4 pre cent, Bharti Airtel shares dipped 1.23 per cent, shares of HCL Technologies went down 1.92 per cent, MphasiS stocks went down 3.63 per cent, Tejas Networks stock slipped 7.57 per cent while Reliance Communications share price rose 4.76 per cent after the Closing Bell.
Among the major Asian markets, the Japanese Nikkei index went up 0.32 per cent, South Korean Kospi added 0.26 per cent, Hang Seng rose 0.48 per cent while the Shanghai market crashed 0.63 per cent in the intraday trade session.