NEW DELHI: Indian stocks seemed to have lost some steam as they declined for the second consecutive session on Monday. The decline can be attributed primarily due to mild profit booking.
The latest slump in stocks comes after a five-week long consistent rally in the benchmark indices - Sensex and Nifty.
The indices declined 1 per cent each in the afternoon trade. But there were some stocks which ignored the overall market trend and hit upper circuits. Seamec, Sikko Industries, Transwarranty, Websol Energy, and Eros International Media were among the top gainers. Seamec and Sikko Industries hit 20 per cent upper circuits, whereas Transwarranty, Websol Energy and Eros International Media tasted 10 per cent upper circuits.
Some of the other stocks that hit 5 per cent upper circuit are Chemfab Alkalis, Brightcom Group, Kritika Wires, Arihant Capital, and Kshitij Polyline.
How has the overall market has been performing?
Until Thursday, Indian stocks extended their bull run for the fifth straight week supported by fresh inflows of foreign investments as well as some moderation in inflation -- both in the US and India. Also, the latest softening of international crude oil prices infused buying sentiments among investors.
The total market capitalisation of BSE-listed companies last week touched an all-time high. Besides, the benchmark index Sensex touched the psychologically crucial 60,000 mark on Wednesday after more than four months to later fall due to profit booking.
During the past five weeks, benchmark indices - Sensex and Nifty - rose nearly 10 per cent on a cumulative basis, thereby recovering largely the entire losses they witnessed so far in 2022. The latest rally in stocks made Indian investors richer by around Rs 25 trillion.
For the record, till early July, foreign portfolio investors (FPIs) were consistently selling equities in the Indian markets for the past nine-to-ten months due to various reasons, including tightening of monetary policy in advanced economies, and rising demand for the dollar and high returns from US bonds.
They have pulled out Rs 167,888 crore worth of equities so far in 2022, NSDL data showed. In July, they were, however, the net buyer with a total purchase of equities worth Rs 4,989 crore. So far in August, they bought equities worth another Rs 44,481 crore, data showed.