Indian Stocks Retreat After Positive Start

The Indian stock market retreated after a positive start on Wednesday, with investors looking to take some profits after five successive days of gains that lifted the key indices to record all-time highs.

After encouraging news on U.S. stimulus and post-Brexit trade deal drove stock prices up sharply, investors are now looking for fresh directions. Also, with the reporting season set to begin in another couple of weeks, activity remains a bit stock specific for now.

The benchmark BSE Sensex, which hit a fresh high of 47,807.85 in early trades, is currently down 10.35 points or 0.02% at 47,602.73. The broader Nifty index of the National Stock Exchange is down 5.10 points or 0.04% at 13,927.50, after hitting a new high at 13,982.90

Bank stocks are seeing some weakness, weighed down by comments from the central bank that the financial sector may face a sharp deterioration in asset quality in the near term due to a significant percentage of outstanding loans under a moratorium.

State Bank of India, IndusInd Bank, Axis Bank and ICICI Bank are down by 0.3 to 1%. Kotak Bank is up in positive territory with a gain of 0.7%.

HDFC, Sun Pharmaceutical Industries, Larsen & Toubro, Bharti Airtel and Reliance Industries are modestly lower.

Among the gainers, Tech Mahindra is up 1.3%, HCL Technologies is gaining nearly 1%, ONGC, Bajaj Finance and Mahindra & Mahindra are up 0.4 to 0.85%, while Tata Consultancy Services and Nestle are up with modest

Shares of JMC Projects (India) Limited are up after the company announced that it has bagged building projects in India worth about Rs 698 crore.

IIFL Securities is gaining about 2%. The company's share buyback program for Rs 90 crore has commenced this morning.

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