The Indian equity benchmarks snapped their six-day Budget rally on Tuesday as investors booked profits at record highs, analysts said. The benchmarks staged a gap up opening wherein the Sensex rose as much as 487 points to hit record high of 51,835.86 and Nifty 50 index touched an all-time high of 15,257. However, late profit booking in recent outperforming auto, metal, PSU banking and pharma shares led to Sensex declining as much as 642 points from record high.
The Sensex ended 20 points lower at 51,329 and Nifty 50 index declined 7 points to settle at 15,109.
The benchmark stock indexes hit multiple all-time highs in recent sessions as investors cheered last week’s high-spending and growth-focused budget aimed at reviving the economy. Strong foreign inflows, solid corporate earnings and buoyant global markets have also aided sentiment, analysts said.
“The market extended the gain further after the decisive break from the Nifty 50 Index level of 15,000. The market has already attained the projected level of 15,230-15,250. The level of 15,230-15,250 will act as short-term resistance. The momentum indicators like RSI, MACD also show divergence, supporting our view that the market is likely to pause around the current levels,” said Ashis Biswas, head of technicals at CapitalVia Global Research.