India’s NSE Nifty 50 index had hit an all-time high in early trading after surpassing the 13,000 level for the first time ever on Tuesday, powered by upbeat vaccine trial data and strong inflows from foreign money managers.
The Nifty 50 was down 0.24% at 13,024.30 by 0530 GMT, while the S&P BSE Sensex was 0.24% lower at 44,424.29.
The Nifty IT and Nifty pharmaceutical indexes were each down more than 1.2%. IT services firms Infosys and Tata Consultancy Services were among the top drags on the Nifty 50.
The IT services and drugs sectors have been early winners during the COVID-19 pandemic and have each clocked gains of 40% or more since the start of 2020.
“We are seeing profit-taking. The market is definitely over-bought. There’s some shifting of portfolios,” said Neeraj Dewan, director at Quantum Securities in New Delhi.
“Other sectors that can benefit with the economy opening up in the next three or six months are expected to rise,” he said, adding infrastructure stocks could see more investor interest.
In a bright spot, the Nifty PSU banking index that tracks India’s state-owned lenders advanced 1.8%. Punjab National Bank rose 2.8%, while Bank of Baroda jumped nearly 4%.
Meanwhile, world shares hit a record high following an advance on Wall Street that saw the Dow Jones benchmark crack 30,000 on U.S. president-elect Joe Biden’s transition to the White House and increasing confidence a COVID-19 vaccine would be ready
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