The BSE Sensex surged to an all-time high of 30,024 as the Reserve Bank of India (RBI) announced a surprise repo-rate cut.
The BSE Sensex surged to an all-time high of 30,024 as the Reserve Bank of India (RBI) announced a surprise repo-rate cut.
It, however, plunged 213 points (0.72%) to end the day at 29380.73 in volatile session, which saw the index coming down 644 points from the day's high.
Nifty closed 73 points down with CNX PSU Bank, Metal, Commodity and Bank Nifty being among the biggest losers.
The RBI move helped lift the market sentiments at the start of the day, pushing the Sensex above the psychological 30000 mark, but heavy profit-booking saw the markets shedding early gains.
Interestingly, as per the provisional data, foreign institutional investors (FIIs) were net buyers at Rs 2,786.24 crore, while domestic institutional investors (DIIs) bought shares worth Rs 16.89 crore.
Devang Mehta, senior vice-president and head, equity sales and advisory, Anand Rathi Financial services, said, "We witnessed a healthy correction in the markets as Bank Nifty had rallied too much, and profit-booking was awaited."
After the sharp upmove in the markets before the run up to the budget and after it, traders were lured to book profits, but this is not an indication of a steep correction, believe market participants.
Siddharth Bhamre, head, equity derivatives and technical, Angel Broking, said, "Statistics show the positive trend is not changing and we will wait to see the FII positions before making further moves."
Sahil Kapoor, head, technical analyst, Edelweiss Securities, said the near-term resistance for the Nifty is from 9300 to 9500, while any dip below 8900 will be a good level to buy.
On the Nifty, 41 stocks remained on the negative territory on Wednesday, while eight stocks remained positive and one stock was unchanged.
Among the Nifty stocks, Sesa Sterlite was the biggest loser (4.75%), NMDC (4.34%) and Bank of Baroda (3.74%). On the other hand, owing to the US FDA approval for Elepsia XR extended release tablets to its subsidiary, Sun Pharma Advanced Research Co, Sun Pharma bucked the trend by gaining 6.57%, followed by DLF and ITC, which gained 1.85% and 1.04%, respectively.
The fall in the markets was also due to subdued Asian markets as investors stayed cautious before upcoming central bank meetings and US jobs data.
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