Indian equities see profit booking for third consecutive day

Indian equities saw profit booking for third consecutive day amid weak global cues ahead of BOE interest rate decision

New Delhi: Domestic market continued to witness downward pressure as investor’s sentiments turned sour in the wake of the rating agency Fitch’s decision to downgrade the US credit rating.

Indian equities saw profit booking for third consecutive day amid weak global cues ahead of BOE interest rate decision, says Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services. Nifty opened lower and remained in negative territory throughout the session to close with loss of 145 points (-0.7%) at 19382.

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Except for Pharma, weakness was seen across the sectors. Realty, Financial Services and Oil & Gas were top laggards. Going forward, markets will take cues from BOE interest rate decision outcome along with the important macro data like US Jobless Claims, Service PMI, and non- manufacturing PMI to be release today (Thursday).

Overall, the trend of the market remains positive with the current decline to be utilize as buying opportunity, he said.

Vinod Nair, Head of Research at Geojit Financial Services said global markets are still grappling with the impact of the US rating downgrade, with spiking bond yield and strengthening dollar index.

However, the pharma sector has managed to weather the storm thanks to its strong earnings outcome, while mid and small-cap stocks have outperformed the benchmark index.

The domestic service PMI has surpassed market expectations, reaching a 13-year high due to a rise in new orders, particularly in international sales.