Lagatar24 Desk
Mumbai, Oct.20: The domestic stock markets fell about 1% to end negative for the second straight day amid increased volatility due to profit-booking at higher levels. The benchmark BSE Sensex traded in a 770-point range between an intra-day high of 61,880 and a low of 61,109 before closing at 61,259, down 456 points or 0.74 percent, while the NSE Nifty traded in a 152-point range between an intra-day high of 18,458 and a low of 18,209 before closing at 18,267, down 152 points or 0.83 percent. All of the BSE sectoral indices closed in the red, with information technology stocks losing 2% of their value.
The broader markets were also hit by selling pressure, with the BSE Midcap and BSE Smallcap indexes each losing roughly 2%.
Market experts believe that investors are taking profits at every peak, causing the market to become more volatile. Analysts also stated that investors were looking forward to hearing from firms during the September quarter reports, as increasing commodity costs and raw material expenses are projected to eat into profit margins even as profits rise.
On the BSE, Titan, Hindustan Unilever, NTPC, and L&T all lost roughly 2% each. Hindustan Unilever announced a net profit of Rs 2,187 crore for the July-September quarter, up 8.86% from Rs 2,009 crore in the same quarter previous year. Due to rising commodity prices, Hindustan Unilever has cautioned that margins may continue under pressure in the foreseeable future.
IRCTC dropped 17% on Wednesday, following an 8% drop the day before. After hitting a 52-week high of 6,393 on Tuesday morning, the stock has fallen roughly 30% in just two days.
The Sensex finished 500 points lower; the top losers are Hindustan Unilever, NTPC, and L&T.
Bharti Airtel, SBI, Axis Bank, Bajaj Finance, and ICICI Bank, on the other side, defied the trend and gained 1-4 percent apiece on the BSE.
The market breadth on the NSE was thin. Approximately 877 shares rose, 2,351 shares fell, and 115 shares were unchanged.
