The market closed marginally lower on Thursday amid profit booking, even as the Union cabinet approved the government’s mega divestment exercise.
The Sensex shed 76.47 points or 0.19 per cent to close at 40,575.17, while the Nifty fell 30.70 points or 0.26 per cent to close at 11,968.40.
According to analysts, the market is closely awaiting the GDP data, due on 29 November, before making the decisive move. The GDP data is likely to indicate that the slowdown in the economy was deepening.
The BSE Midcap and Smallcap fell 0.73 percent and 0.43 percent respectively. The market breadth was negative. On the BSE, 1,101 shares rose and 1,454 shares fell. A total of 206 shares were unchanged. On the Nifty, 14 stocks advanced while 36 stocks declined.
Among sectoral indices, BSE Metal was the biggest laggard, ending down 2.23 percent, followed by BSE Oil&Gas with 2.14 percent lower. The BSE Realty gained 0.45 percent.
“The consolidation phase below 12K continues. The region around previous all-time highs of 12,100 is witnessing some profit booking. It's not at all unexpected to witness some retracement near all-time highs. Broader structure continues to remain positive and the uptrend is intact. Near term corrections towards the support, zone should be utilized to build long positions,” said Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures Ltd.
The state owned company stocks were in focus today as the government kicked off a blockbuster disinvestment plan on Wednesday, lining up the sale of five public sector units (PSUs), including majority stakes in bluechip oil company BPCL and Shipping Corporation of India. BPCL was the top loser on NSE closing 6 per cent lower at Rs 512.10, while SCI slumped over 6 per cent to Rs 64.05 on BSE.
“We strongly feel that market is set for profit taking or consolidation prior to further rise. Traders should limit their naked leveraged trades in the index and book profits on every rise. In case of decline, 11,800-11,850 zone would act as a cushion in Nifty. Stocks, on the other hand, would continue to see movement on both sides thus maintain extra caution in the stock selection", said Ajit Mishra Vice President, Research, Religare Broking.