Reuters
The benchmark BSE Sensex yesterday fell 0.4%, or 106.38 points, to end at 26,314.29 after marking its record high of 26,530.67 on Tuesday.
The Nifty edged lower yesterday, unable to sustain a rally after hitting a third consecutive record high earlier in session as investors took profits in blue-chips such as Oil and Natural Gas Corp (ONGC).
The falls ended a six-day rally, the longest winning streak since an eight-session run in mid-July.
Foreign funds added Rs41.22bn ($677.4mn) in exposure to Indian equity derivatives on Tuesday, exchange data showed.
“Indian shares are still good buys given the economic recovery, government’s reform talk and the central bank’s focus on increasing resilience against an expected rise in US rates,” said G Chokkalingam, founder of Equinomics, a research and fund advisory firm.
The broader Nifty lost 0.28%, or 22.20 points, to end at 7,875.30, after earlier rising as much as 0.32% to hit an all-time high of 7,922.70.
Meanwhile, the rupee rose to a near three-week high against the dollar yesterday on the back of strong foreign investor buying in the debt market, although greenback demand from importers and a fall in shares limited further gains.
Traders said a large foreign bank was spotted selling dollars, amounting to around $250mn, for investment intended into government bond markets.
The partially convertible rupee closed at 60.61/62 per dollar compared with 60.6750/6850 in the previous session. The unit hit 60.52 during trade, its highest since July 31, although it ceded ground later in part on dollar demand from importers. The gains in the rupee came on a day when government bonds rallied amid speculation that foreign portfolio investors were active buyers, especially in 5-8 year debt.