Sensex pares 200 pts from day's high, Nifty below 26,150: Key reasons behind partial profit booking

Stock market today: Sensex, Nifty see profit booking in trade. 

The benchmark equity indices Sensex and Nifty pared a part of their early gains on Wednesday due to a partial profit booking after a sharp morning rise.

After falling for five straight sessions, the Sensex jumped 668.04 points, or 0.79 per cent to 85,343.12 in early trade, while the broader Nifty climbed 219.35 points, or 0.85 per cent to 26,158.20 after four sessions of losses.

However, the indices gave up a portion of their gains later in the session. By 3.15 pm, the Sensex had slipped more than 200 points from the day’s high to trade at 85,212.86, while the Nifty was down from its peak to 26,130.25.

Key reasons behind profit booking

1) Profit booking: The Sensex had risen over 700 points intraday, while the Nifty had moved above the 26,150 level in early trade. As prices moved higher, traders locked in profits, leading to a trimming of gains.

2) FII selling: Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,844.02 crore on Tuesday, marking the sixth consecutive session of net selling.

3) Weak global cues: Weak cues from overseas markets also weighed on sentiment. In Asian trade, South Korea’s Kospi and Hong Kong’s Hang Seng index were lower. US markets ended in the red on Tuesday, and Wall Street futures were also trading lower, indicating a weak opening for US equities.

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