Sensex, Nifty extend losses; Maruti gains on weak yen
A positive opening in European stocks helped Indian markets pare some losses on Thursday. The Sensex traded 74 points or 0.4 per cent lower at 19,402 while the broader Nifty traded 30 points lower at 5,899 at 1 p.m.
Equities have witnessed consolidation through December after a sharp rise that took markets to a 23-month high recently. The Sensex gained nearly 250 points over the last two days, but that has been followed by profit taking today.
Traders said a strong victory for Narendra Modi in Gujarat is unlikely to have any effect on markets.
"In Gujarat, it’s going to be a major victory for Narendra Modi, but the performance has not been so good in Himachal Pradesh. So, both the Congress and the BJP can live with this idea that you cannot extrapolate the results of the two states for the whole country," Jay Shankar, independent economist and political strategist said.
Independent analyst Sarvendra Srivastava said the up move has stalled yet again and 5,940-5,950 levels remain a cap. The Nifty has immediate support at 5,880 levels.
Barring healthcare stocks, all other groups of stocks traded lower. On the Nifty, 38 of the 50 stocks traded lower. Ambuja Cements and Jaiprakash Associates traded with over 2 per cent losses.
Drug maker Cipla was the top Nifty loser, rising 1.6 per cent. FMCG major HUL and car maker Maruti Suzuki were the other big gainers, rising 0.8-1 per cent.
Maruti shares gained on bets a steep depreciation in the yen will boost earnings by reducing the costs of imports from Japan.
Equities have witnessed consolidation through December after a sharp rise that took markets to a 23-month high recently. The Sensex gained nearly 250 points over the last two days, but that has been followed by profit taking today.
Traders said a strong victory for Narendra Modi in Gujarat is unlikely to have any effect on markets.
"In Gujarat, it’s going to be a major victory for Narendra Modi, but the performance has not been so good in Himachal Pradesh. So, both the Congress and the BJP can live with this idea that you cannot extrapolate the results of the two states for the whole country," Jay Shankar, independent economist and political strategist said.
Independent analyst Sarvendra Srivastava said the up move has stalled yet again and 5,940-5,950 levels remain a cap. The Nifty has immediate support at 5,880 levels.
Barring healthcare stocks, all other groups of stocks traded lower. On the Nifty, 38 of the 50 stocks traded lower. Ambuja Cements and Jaiprakash Associates traded with over 2 per cent losses.
Drug maker Cipla was the top Nifty loser, rising 1.6 per cent. FMCG major HUL and car maker Maruti Suzuki were the other big gainers, rising 0.8-1 per cent.
Maruti shares gained on bets a steep depreciation in the yen will boost earnings by reducing the costs of imports from Japan.
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