Markets in red as investors book profits

Mumbai: The BSE Sensex surged over 1,000 points on Thursday to touch the 40,000-mark for the first time ever following the BJP's thumping electoral show, but could not sustain the euphoria as investors chose to cash in on the gains.

In similar movement, the broader NSE Nifty crossed the historic 12,000-level after early trends gave the BJP a comfortable majority in the Lok Sabha, but succumbed to profit booking towards the fag-end of the session.

The 30-share Sensex tumbled 298.82 points, or 0.76 per cent, to close at 38,811.39, while the Nifty settled 80.85 points, or 0.69 per cent, lower at 11,657.05.

According to experts, the markets had already priced in the election outcome and the focus would now shift to reforms, economic growth, monsoon and developments surrounding the bruising US-China trade conflict.

"Markets were initially enthused to see the election results falling in line with the exit polls.

However, the run up to the D-day was so sharp that it turned out to be a sell on news phenomenon," said Devang Mehta, Head - Equity Advisory, Centrum Wealth Management.

Meanwhile, foreign institutional investors poured in a net Rs 1,352.20 crore into the equity markets on Thursday, provisional data showed. Sectorally, the BSE telecom, capital goods, industrials, realty and power indices ended up to 0.97 per cent higher.

However, FMCG, metal, consumer durables, finance, teck, healthcare and auto declined up to 1.82 per cent.

The broader BSE midcap and smallcap indices followed the benchmarks, shedding up to 0.15 per cent. According to traders, weak cues from other global markets and a depreciating rupee also weighed on investor sentiment.

The rupee depreciated 37 paise to 70.04 against the US dollar in afternoon trade. Brent crude, the global oil benchmark, was trading 1.79 per cent lower at $69.72 per barrel.