Stock markets erase early gains on profit booking

THE BENCHMARK INDICES on Monday gave up early gains as profit booking emerged towards the end of the session, but still managed to end in the green.

- KISHOR KADAM

Starting the week on a positive note, the Sensex rose 460.52 points (0.57%) to an intraday high of 81,171.38, but pared most gains to close at 80,787.30, up 76.54 points or 0.09%. The Nifty climbed 144.50 points (0.58%) to hit an intraday high of 24,885.50, before ending at 24,773.15, up 32.15 points or 0.13%. The rally in auto shares was offset by losses in IT counters.

"The domestic market failed to sustain its early gains as a late-session sell-off reflected the prevailing buy-on-dips, sell-on-rallies strategy, highlighting investor caution," said Vinod Nair, head of research, Geojit Financial Services.

Globally, the sentiment improved after soft US jobs data raised hopes of a Fed rate cut in September.