Indian stocks subdued on mild profit booking
Sep 13, 2023
New Delhi [India], September 13 : Indian stock indices were subdued Wednesday, with the benchmarks witnessing mild profit booking, meaning the investors are taking some money off the table.
The indices – Sensex and Nifty – are, however, near their all-time highs.
Sensex and Nifty were just 5-20 points lower at the time of filing this report. The Nifty 50 breached the 20,000 mark for the first time ever on Monday.
The benchmark indices added over 3 per cent each, respectively over the past week, after India's economy grew firm in the April-June quarter.
Indian economy witnessing a firm GDP growth rate of 7.8 per cent in the first quarter (April-June) of 2023-24, continued foreign portfolio investments are likely to have improved investors’ sentiment lately.
"Market experts have been repeatedly warning of froth in the mid-and small-cap segments. And, the fear of sharp correction in this space has finally happened…,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, referring to the profit booking.
Vijayakumar said “more pain is likely” going ahead.
“Even though the undercurrent of the market is strong, fundamentals do not support a sustained rally. Crude at USD 92 is a big macro concern. The market is ignoring this headwind,” he added.
US markets too were subdued overnight as investors gauge August inflation data, due later today. The consumer inflation rate in the US accelerated to 3.2 per cent in July 2023 from 3 per cent in June, with their central aiming to bring it to 2 per cent.
August inflation data will give some idea about what will be the monetary policy intervention by the US Federal Reserve in its next meeting scheduled on September 19-20.
