Stock indices retreat from record levels on profit booking

Market benchmark BSE Sensex retreated from its record high level to close down by around 68 points on Tuesday mainly due to profit booking in telecom, IT and auto stocks amid growth concerns and evolving political drama in Maharashtra.

The 30-share index touched its all-time intra-day high of 41,120.28 before closing down by 67.93 points or 0.17 per cent at 40,821.30.

The broader Nifty of the National Stock Exchange also soared to a new peak of 12,132.45 in day trade before giving up gains to end lower by 36.05 points or 0.30 per cent at 12,037.70.

Bharti Airtel was the biggest loser among Sensex stocks, dropping by 4.34 per cent after ICRA downgraded the long-term rating of the company due to higher-than-anticipated provision pertaining to the Supreme Court judgement on dues payable towards license fees on adjusted gross revenues (AGR) as well as spectrum usage charge in the latest quarterly results.

Key IT stocks TCS and Infosys also dropped by 1.6 per cent and 1.05 per cent, respectively, as investors preferred to book profits at high levels. HCL Tech fell by 1.29 per cent.

Auto stocks also declined due to growth concerns. Maruti fell by 1.52 per cent, M&M by 1.67 per cent and Tata Motors by 1.36 per cent.

PowerGrid dropped by 2.26 per cent, Sun Pharma by 1.75 per cent,
"Market elevated to a record high coupled with global cheer on trade deal and domestic earnings revival expectation. However, volatility ahead of derivative expiry, political drama and caution on upcoming GDP data led investors to book some profit," Vinod Nair, Head of Research at Geojit Financial Services