Equity benchmark indices Nifty and Sensex hit record highs in the early trade on Friday but declined later amid selling pressure in heavyweights Reliance, Larsen & Toubro and HDFC Bank.
Except for the Bajaj twins, all Sensex companies were trading in red with Reliance falling nearly two per cent.
Taking a sharp U-turn, Sensex declined over 900 points and the Nifty over 240 points by the afternoon.
The trend of benchmark indices touching new highs and reversing has been happening for some time now, and according to analysts, this is likely to continue further.
“We may continue to see profit-booking on the stock specific level in upcoming trading session as well, as the nifty 50 index is in an overbought condition," Mint quoted Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi as saying.
According to analysts, Nifty 50 index is in the overbought zone, leading to the correction after fresh highs. The Nifty 50 has risen about 19 per cent since November, outperforming other Asian peers over the last six months.
