Stock market update: Markets decline in early trade on profit-taking after record rally

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Benchmark equity indices declined in early trade on Tuesday after surging to record high levels in the previous trading session, amid profit-taking and sluggish trends from the global markets.

The 30-share BSE Sensex declined 90.8 points to 82,897.98. The NSE Nifty dipped 26.9 points to 25,356.85, reported PTI.

From the 30 Sensex firms, Tata Motors, Tata Consultancy Services, Maruti, Bajaj Finserv, Tata Steel and Adani Ports were the biggest laggards.

Hindustan Unilever, NTPC, Nestle and ICICI Bank were among the gainers.

In Asian markets, Tokyo and Shanghai were trading lower while Hong Kong quoted with gains. The US markets ended mostly higher on Monday.

"Globally equity markets were flat yesterday signalling a wait and watch mood in anticipation of the Fed rate action tomorrow," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said while speaking on the stock market update, reported PTI.

"Markets are in wait and watch mode with a big Fed move coming up on Wednesday night India time. The market is split on whether it will be a 25 or 50 bps cut by the Fed to start its rate cutting cycle. The economic data allows the Fed to do 25 bps, but a majority of the market feels the Fed has held rates too high for too long," Ajay Bagga, Banking and Market Expert, said while speaking on the stock market update, reported ANI.

He further told ANI, "Indian markets saw a net outflow from FIIs after 6 days of strong inflows. We expect Indian markets to track global cues as the Fed move is keenly watched. However, the trend is clear that as rate cuts happen in the US, the Dollar weakens and flows into EMs pick up. That will be a positive to watch out for the Indian markets going ahead".

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,634.98 crore on Monday, according to exchange data.

Global oil benchmark Brent crude climbed 0.45 per cent to USD 73.08 a barrel.

The BSE benchmark climbed 97.84 points or 0.12 per cent to settle at a new record peak of 82,988.78 on Monday. During the day, it jumped 293.4 points or 0.35 per cent to hit a fresh lifetime intra-day high of 83,184.34.

The Nifty went up by 27.25 points or 0.11 per cent to settle at 25,383.75. During the day, the benchmark gained 89.2 points or 0.35 per cent to hit a new intra-day record peak of 25,445.70.

(With inputs from PTI and ANI)