Benchmark equity indices Sensex and Nifty tumbled in early trade on Friday as investors rushed to book profits after record-breaking rallies in the past few sessions as well as tracking cues from global sell-offs.
LKP Securities shares in focus as the company has announced invest in its wholly owned subsidiary LKP IFSC Private Limiated. The company said that the investment will be made through a rights issue. The counter opened in red at Rs 193.50 against the previous close of Rs 194.65 on the BSE. However, it gained further to hit the 5 per cent upper circuit of Rs 204.35.
“The company has agreed to acquire 5,00,000 equity shares of Rs. 10/- each at par aggregating to Rs. 50,00,000/-(Rupees Fifty Lakhs only) by way of subscribing to the rights issue of LKPIFSC Private Limited,” the company said in an exchange filing.
Meanwhile, benchmark equity indices Sensex and Nifty tumbled in early trade on Friday as investors rushed to book profits after record-breaking rallies in the past few sessions as well as tracking cues from global sell-offs. Massive selling in bellwether stocks like Reliance and ICICI Bank also dragged the investors’ sentiment.
The 30-share BSE Sensex plunged 640.13 points to trade at 81,227.42 in the morning trade. The NSE Nifty declined 271.40 points to 24,739.50. Both the indices slumped up to 1 per cent during early deals.
From the Sensex pack, Tata Motors, Maruti Suzuki India, Tata Steel, JSW Steel, Larsen & Toubro, Adani Ports, Tech Mahindra, NTPC, and Tech Mahindra were the laggards. HDFC Bank, Hindustan Unilever, Asian Paints, Nestle India and ITC were among the gainers.
“The rally in India has been sustained more by money flows into the market than by fundamentals. Without fundamental support the rally cannot sustain. It remains to be seen whether the buy on dips strategy will work this time too. Since valuations are high some profit booking, particularly in mid and small caps, can be considered,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Global oil benchmark Brent crude rose 0.78 per cent to USD 80.14 a barrel.
In Asian markets, Tokyo, Shanghai, Hong Kong and Seoul were trading lower.The US stock market also ended lower on Thursday after a record rally. Foreign institutional investors bought equities worth Rs 2,089.28 crore in the capital markets on Thursday.
The 30-share Sensex climbed 126.21 points or 0.15 per cent to settle at a new lifetime high of 81,867.55, while NSE Nifty rose 59.75 points or 0.24 per cent to settle at an all-time closing peak of 25,010.90.
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)