Key indices edge lower after scaling new peaks

Mumbai: Benchmark stock indices Sensex and Nifty closed marginally lower after hitting their fresh all-time highs on Monday due to profit-taking at higher levels and foreign fund outflows. The 30-share BSE Sensex pared early gains and closed 64.77 points or 0.08 per cent lower at 85,641.90. During the day, the benchmark jumped 452.35 points or 0.52 per cent to hit a record intra-day high of 86,159.02. The 50-share NSE Nifty dipped 27.20 points or 0.10 per cent to settle at 26,175.75. During the day, it climbed 122.85 points or 0.46 per cent to hit a lifetime high of 26,325.80.

Markets faced correction at higher levels as expectations of an RBI rate cut this week faded following better-than-expected Q2 GDP growth, an expert said. A slower growth in GST collection and profit-taking at higher levels also dragged the key indices. Stock markets had surged to their record highs in the morning session as investor sentiment turned positive after India's economy grew at a higher-than-expected 8.2 per cent in July-September - recording the fastest pace in six quarters. Among Sensex firms, Bajaj Finance, Sun Pharma, Trent, Mahindra & Mahindra, State Bank of India and Bajaj Finserv were the major laggards. However, Tata Motors Passenger Vehicles, Maruti, Bharat Electronics, Kotak Mahindra Bank, Adani Ports and HCL Tech were among the gainers.

"After reaching a new high, the market moved into a range-bound phase as expectations of an RBI rate cut in December faded following better-than-expected Q2 GDP growth and a sharp depreciation of the rupee. Sentiment turned slightly cautious due to muted GST collections in November, driven by lower rates," Vinod Nair, Head-Research, Geojit Investments Limited, said. "Markets surrendered early gains and pulled back sharply from record highs as profit-booking set in amid weak global cues and a cautious interest-rate outlook," Vikram Kasat, Head Advisory, PL Capital, said.