Bear strikes markets as stocks end in red on 2nd trading day

Mumbai: Market benchmark Sensex surrendered early gains to finish in the red for the third consecutive session on Tuesday following brisk selling in frontine stocks.

The grim COVID-19 situation and continued selling by foreign funds has sapped risk appetite, traders said.

After a gap-up opening, the 30-share BSE index succumbed to profit-taking in afternoon trade to finish at 48,253.51, down 465.01 points or 0.95 per cent.

On similar lines, the broader NSE Nifty slumped 137.65 points or 0.94 per cent to close at 14,496.50.

Dr Reddy's was the top loser among the Sensex constituents, retreating 2.26 per cent, followed by Reliance Industries, Sun Pharma, HDFC twins, Infosys, M&M and Bharti Airtel.

On the other hand, ONGC, Bajaj Finance, TCS, SBI, Kotak Bank and Nestle India were among the gainers, climbing up to 1.86 per cent.

"Indices lost a percentage on Tuesday as the street punished earnings disappointment in several high-quality midcaps. Afternoon trade witnessed profit-taking in metals and pharma names as the street exhibited nervousness on regional lockdowns which accentuated the

weakness.

"In the broader market, paper stocks were sought after today on hardening pulp prices while coffee producers saw investor appetite," said S Ranganathan, Head of Research at LKP Securities.

Sectorally, BSE healthcare, energy, telecom, consumer durables, auto and basic materials indices lost as much as 1.50 per cent, while oil and gas, utilities and capital goods ended with gains. Broader BSE midcap and smallcap indices fell up to 0.57 per cent.

Meanwhile, international oil benchmark Brent crude was trading 1.79 per cent higher at USD 68.77 per barrel.