Sensex logs 8th day of gain, Nifty slips from record highs on high valuation concerns

MUMBAI: Benchmark Sensex closed higher by 94 points while the broader Nifty retreated from record high levels in a volatile trading on Tuesday as investors turned cautious amid high valuation concerns. Rising for an eighth day in a row, the 30-share BSE Sensex rose by 94.05 points or 0.14 per cent to settle at 67,221.13. During the day, it jumped 412.02 points or 0.61 per cent to 67,539.10.
The broader Nifty, however, pared all its gains and ended marginally lower by 3.15 points or 0.02 per cent at 19,993.20. During the day, the 50-issue barometer climbed 114 points or 0.57 per cent to hit its all-time high of 20,110.35.
Among the Sensex firms, Tata Consultancy Services, Larsen & Toubro, Infosys, UltraTech Cement, ICICI Bank, Nestle, ITC and

Sun Pharma

were the major gainers.
Power Grid

, NTPC, Tata Motors, Tata Steel, Mahindra & Mahindra and Reliance Industries were among the laggards.

“The level of pessimism has risen in the stock market leading to a precautionary approach to book profits on a notion that the valuation has extended beyond the rationale. The correction is happening on midcaps while largecaps are maintaining their strength.
“This cautious trend can prevail in the short-term, but the end-game is on the rise of the domestic economy, surprising upside in corporate earnings, and change in domestic investment patterns, which is expected to continue on a long-term basis,” said Vinod Nair, Head of Research at Geojit Financial Services.

In the broader market, the BSE smallcap gauge tumbled 4.02 per cent and midcap index fell by 2.96 per cent.
Among the indices, utilities tanked 3.74 per cent, power declined by 3.66 per cent, telecommunication (3.63 per cent), realty (3.26 per cent), oil & gas (3.07 per cent), energy (2.77 per cent) and industrials (2.76 per cent).
IT, bankex and teck were the gainers.
In Asian markets, Tokyo settled in the green while Seoul, Shanghai and Hong Kong ended lower. European markets were trading on a mixed note. The US stocks ended in positive territory on Monday.
Foreign Institutional Investors (FIIs) turned buyers on Monday as they bought equities worth Rs 1,473.09 crore, according to exchange data.
Global oil benchmark Brent crude climbed 0.74 per cent to USD 91.31 a barrel.
The 30-share BSE benchmark regained the 67,000 level on Monday. The benchmark jumped 528.17 points or 0.79 per cent to settle at 67,127.08. The Nifty ended at 19,996.35, reflecting a gain of 176.40 points or 0.89 per cent.
The Nifty scaled the record 20,000 mark for the first time ever in intra-day trade.

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