Sensex snaps three-day winning run; IT, pharma stocks weigh
BSE Sensex surged to yet another all-time high but closed modestly lower on Tuesday as investors offloaded IT, pharma, and banking stocks at higher levels. A sharp drop in the rupee, which lost 32 paise against the US dollar, further weighed on market mood, traders said. Snapping its three-day rising streak, the 30-share BSE benchmark settled 17.43 points or 0.03 percent lower at 58,279.48.
Sun Pharma was the top laggard in the Sensex pack
Intra-day, it touched a fresh lifetime high of 58,553.07. On similar lines, the broader NSE Nifty fell 15.70 points or 0.09 percent to 17,362.10. It scaled an all-time peak of 17,436.50 during the session. Sun Pharma was the top laggard in the Sensex pack, sliding 1.81 percent, followed by Tech Mahindra, Axis Bank, HCL Tech, Infosys, TCS, and L&T.
In contrast, HDFC was the top gainer
In contrast, HDFC led the gainers' list with a jump of 2.56 percent. Bharti Airtel, IndusInd Bank, ITC, UltraTech Cement, Nestle India, Reliance Industries, and Asian Paints were among the other winners. "The domestic market traded with high volatility as investors locked in gains from the recent rally and global factors," said Vinod Nair, Head of Research at Geojit Financial Services.
Broad market maintained its buoyancy in segments: Expert
However, the broad market maintained its buoyancy in segments, which are bound to benefit from unlocking, he added. "European shares traded with cuts ahead of the European Central Bank's policy meeting on Thursday, where talks regarding the tapering of asset purchase program are likely to take place in the backdrop of rising eurozone inflation," Nair said.
We recommend maintaining extra caution in stocks selection: Expert
Ajit Mishra, VP - Research, Religare Broking Ltd, said in the absence of any major domestic event, global cues would continue to dictate market trends. "Indications are in the favor of some consolidation or profit-taking. Thus, we recommend maintaining extra caution in stocks selection. On the benchmark front, Nifty has immediate support around the 17,200-17,250 zone," he added.
BSE midcap and smallcap indices fell as much as 0.73%
Sector-wise, BSE realty, IT, utilities, oil and gas, and power indices tumbled up to 2.24 percent, while telecom, consumer durables, FMCG, and energy finished in the green. In the broader markets, the BSE midcap and smallcap indices fell as much as 0.73 percent. On the front of the global market, Asian equities rallied after China posted robust exports data for August.
FIIs offloaded shares worth Rs. 589.36 crore on Monday
Bourses in Shanghai, Tokyo, and Hong Kong ended with gains, while Seoul settled in the red. Equities in Europe were trading on a negative note. Meanwhile, international oil benchmark Brent crude rose 0.54 percent to $72.61 per barrel. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs. 589.36 crore on Monday, as per provisional exchange data.
