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India’s BSE sensex retreats, loses over 160 points
May 27, 2014, 5:38 am

The new government is expected to unveil a new budget by early July [Getty Images]

The new government is expected to unveil a new budget by early July [Getty Images]

India’s benchmark Bombay Stock Exchange (BSE) index Sensex on Tuesday retreated from record high by losing over 160 points in early trade as cautious investors booked profits in recent outperformers mainly power and PSU sector stocks.

The 30-share barometer, which had gained over 418.86 points in the past three sessions, shed 160.88 points, or 0.65 per cent, to 24,556. The gauge had closed at a new record high of 24,716.88 in yesterday’s highly volatile trade.

On similar lines, the broad-based National Stock Exchange index Nifty fell by 22.35 points, or 0.30 per cent, to 7,336.70.

The new government is expected to unveil a new budget by early July.

Brokers said profit-booking at record level by participants who had created positions, in the wake of the Narendra Modi-led right wing Bharatiya Janata Party coming to power, snapped record-setting spree but narrowing current account deficit at 1.7 per cent of GDP in FY’14 from 4.7 per cent in FY’13 limited the losses.

Modi, along with his new Cabinet, was sworn in on Monday. Investors key focus will be on his cabinet appointments, especially the finance ministry which is being held by senior BJP leader Arun Jaitley, a member of the upper house of the Indian parliament.

Deutsche Bank last week downgraded Indian stocks to “neutral” from “neutral/overweight” in contrast to other emerging markets, saying valuations, appeared “very stretched.”

 

Source: Agencies

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