Indian Stocks – Indian stocks fall on profit-taking amid soaring profits


(updates level in paragraph 2, adds analyst comment and subsequent paragraph)

Written by Bharath Rajeswaran

BENGALURU, May 17 (Reuters) – Investors rallied after the benchmark Nifty 50 rose 5% through fiscal 2024, weighed down by weak global indicators in U.S. debt ceiling talks. Indian stocks fell on Wednesday after taking profits.

The Nifty 50 is down 0.14% to 18,260.35 at 9:48 a.m. ET, while the S&P BSE Sensex is down 0.16% to 61,834.03.

Eight of the 13 major sector indexes fell, with heavyweights such as finance and information technology (IT) down 0.3% and 0.6%, respectively.

“The market has seen some profit taking, especially in high-end leading stocks,” said Siddhartha Chemka, head of retail research at Motilal Oswar Financial Services.

“Given the sharp rise in the past few weeks, we cannot rule out the possibility that some correction will occur.”

The Nifty 50 fell 0.61% on Tuesday after hitting a five-month high on Monday. The index is up 5.34% so far this quarter, aided by a strong earnings season and consistent buying by foreign institutional investors (FII), three analysts said.

Vaishali Parekh, vice president of technical research at Pravdas Liladar, pegged 18,200 and 18,450 as support and resistance levels for the benchmark.

Metals stocks fell 0.5% on concerns about a rebound in Chinese demand given weak macroeconomic data in the world’s largest metal consumers and producers.

Among individual stocks, Amber Enterprises and Credit Access Grameen rose more than 13% and more than 7%, respectively, on strong three-quarter results, while LIC Housing Finance and Reddington fell on falling earnings.

Wall Street stocks ended lower overnight as risk appetite weakened due to ongoing debt ceiling negotiations and weak earnings. Asian markets were sluggish.

(Reporting by Bharath Rajeswaran in Bangalore; Editing by Varun HK and Janane Venkatraman)

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