Bourses snap early gains to close in red for third session

Mumbai: Equity indices gave up early gains to close in the red for the third session on the trot on Wednesday, weighed by selling in banking and finance counters amid inflationary pressures and persistent foreign fund outflows.

A weak rupee and lacklustre global cues also kept buying sentiment in check, traders

said.

The 30-share BSE Sensex opened on a firm footing but failed to hold on the momentum, finishing 237.44 points or 0.41 per cent lower at 58,338.93.

On similar lines, the broader NSE Nifty dipped 54.65 points or 0.31 per cent to close at 17,475.65.

HDFC and HDFC Bank were the top laggards in the Sensex pack, shedding 2.01 per cent and 1.90 per cent respectively, followed by Maruti, Dr Reddy's, Asian Paints, PowerGrid, Bajaj Finserv and Kotak Bank.

In contrast, ITC, Sun Pharma, Hindustan Unilever Limited, State Bank of India, NTPC and Bajaj Finance were among the prominent gainers, spurting as much as 1.87 per cent.

Stock markets will be closed on Thursday for Mahavir Jayanti and Dr Babasaheb Ambedkar Jayanti, as well as on Friday on account of Good Friday.

In the holiday-truncated week, the Sensex tumbled 1,108.25 points or 1.86 per cent, while the Nifty lost 308.70 or 1.73 per cent.

"The onset of the earnings season, the release of key inflation data and ECB policy meeting drove the market this week. Hyperinflation and the risk of elevated policy rate hike placed the global market on its toes impacting the performance of equities with rise in yield.

International oil benchmark Brent crude gained 0.56 per cent to $105.23 per barrel.

The rupee dipped 2 paise to 76.17 against the US dollar on Wednesday, tracking a firm greenback in the overseas market and weak domestic macroeconomic data.

Foreign institutional investors remained in selling mode, offloading shares worth a net Rs 3,128.39 crore on Tuesday, according to exchange data.