Benchmark indices face profit booking after sharp rally

New Delhi, April 30 Benchmark indices gave up gains on Tuesday amid profit booking after a sharp rally.

The NSE Nifty 50 lost 39 points or 0.17 per cent to close at 22,605, while the BSE Sensex was down 188.50 points or 0.25 per cent at 74,482.78.

Vinod Nair, Head of Research, Geojit Financial Services, said that global markets remained mixed ahead of US Fed policy meet, as markets appear to have already factored in the slim chance of a near-term rate cut.

"Profit booking ensued towards the close given the sharp rally in the last couple of days and a holiday-led truncated week. Domestic initial Q4 corporate earnings forecasts were conservative; however, Nifty 50 companies' earnings till date have remained marginally better, with the exception being the IT sector, while auto and realty continue to be robust," he said.

Rupak De, Senior Technical Analyst, LKP Securities, said that the Nifty witnessed selling pressure as it encountered resistance near the previous swing high, resulting in a weak closing.

Over the next few days, the trend in the headline index might remain sideways unless it breaks above the all-time high of 22783. On the downside, immediate support is placed at 22500, below which the index might decline further, he said.

Source: IANS