BSE Sensex falls 75 points on profit-booking

The benchmark BSE Sensex fell over 75 points in early trade today as stocks of oil&gas, PSU, metal, healthcare and banking companies succumbed to profit-booking after two sessions of gains.

The 30-share index declined by 75.33 points or 0.27 per cent to 27,611.97. In the previous two sessions, the gauge gained 481.24 points.

In a similar fashion, the NSE Nifty edged down by 30.85 points or 0.36 per cent to 8,342.80.

In a similar fashion, the NSE Nifty edged down by 30.85 points or 0.36 per cent to 8,342.80.

However, among other Asian bourses, Hong Kong Hang Seng was up by 0.48 per cent, while Japan’s Nikkei gained 0.68 per cent in early trade today tracking overnight gains in the US.

The US Dow Jones rose 0.14 per cent to close at record high in yesterday’s trade.

Asian shares shrug off losses, Greek woes pressure euro.

Reuters – Asian shares shrugged off early losses on Tuesday, as rallying Chinese shares and Wall Street’s record close offset euro worries over Greece’s fiscal woes.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent. The CSI300 index surged 3.1 percent and the Shanghai Composite Index rose 2.6 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent. The CSI300 index surged 3.1 percent and the Shanghai Composite Index rose 2.6 percent.

“When risk appetite recovers investors start to pay more attention to stock valuations,” said Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center. “About 40 percent of the Topix components are below their book value, so in the mid-term, people may pick up such stocks.”

Both the Dow Jones industrial average and the S&P 500 closed at record highs, the third straight day for the latter, after lacklustre economic data raised hopes that the U.S. Federal Reserve would hold off raising interest rates.

The National Association of Home Builders said its index of members’ sentiment fell to 54 points in May from 56 in April, short of a forecast increase to 57 among economists polled by Reuters.

Some investors were wary of which scenario to fear most: The Federal Open Market Committee tightening monetary policy, or the U.S. economy deteriorating to the point where a rate hike was indefinitely delayed.

“The FOMC’s biggest worry is not lift off and its market and economic implications, but what happens if the economic recovery dies of old age without the Fed having done anything to tighten,” Steven Englander, global head of G10 FX strategy at CitiFX in New York, said in a note to clients.

“Right now the rates market builds in very gradual policy rate normalization, with increasing uncertainty about the date of lift off,” he said.

“Right now the rates market builds in very gradual policy rate normalization, with increasing uncertainty about the date of lift off,” he said.

The euro, which jumped to nearly four-month highs against the dollar last week, skidded more than 1 percent on Monday. It was last down 0.2 percent on the day at $1.1297.

Fears of a Greek bankruptcy persisted even as the country’s finance minister said on Monday that it was close to a deal with its lenders that would help it meet debt repayments next month.

The dollar was steady on the day against its Japanese counterpart at 119.95 yen.

Expectations of more easing from the Bank of Japan kept the Japanese currency in check. The BOJ is seen expanding its massive stimulus programme in October, according to most economists polled by Reuters – even though Governor Haruhiko Kuroda has said there is no need to do so.

Expectations of more easing from the Bank of Japan kept the Japanese currency in check. The BOJ is seen expanding its massive stimulus programme in October, according to most economists polled by Reuters – even though Governor Haruhiko Kuroda has said there is no need to do so.

Spot gold edged down 0.2 percent to $1,221.83 an ounce a day after it scaled a three-month high after disappointing U.S. economic data quashed expectations that the Fed would hike interest rates anytime soon.