Markets decline for 3rd day dragged by selling in IT, select banking stocks amid FII outflows

Benchmark indices Sensex and Nifty declined for a third day on Wednesday dragged by selling in IT and select banking shares amid weak global trends and FII outflows.

The 30-share BSE Sensex closed lower by 159.21 points or 0.27 per cent at 59,567.80 as 21 of its components ended in the red . During the day, the index fell 274.29 points or 0.45 per cent to 59,452.72.

The broader Nifty dipped 41.40 points or 0.23 per cent to settle at 17,618.75 with 31 of its shares closing with losses.

Analysts said stock markets are in a consolidation phase after a record nine-day winning run to April 13 which saw benchmark Nifty soaring by 5.7 per cent and Sensex by 4.73 per cent.

Sensex and Nifty have corrected by around 1.4 per cent in the three straight sessions of losses to Wednesday following poor commentary by major IT companies.

Among the Sensex firms, HCL Technologies fell the most by 2.4 per cent. IndusInd Bank (2.35 per cent), Infosys (2.28 per cent), Wipro (1.8 per cent), NTPC (1.71 per cent), Asian Paints (1.7 per cent), Tata Consultancy Services (1.36 per cent),Tech Mahindra (1.03 per cent) and SBI (1 per cent) were among the major laggards.

Axis Bank was the lead Sensex gainer, rising by 1.05 per cent. Bharti Airtel, Mahindra & Mahindra, HDFC, HDFC Bank, Bajaj Finance and Reliance Industries also advanced.

In the broader market, the BSE smallcap gauge gained 0.12 per cent, while midcap index fell marginally by 0.18 per cent.

The rupee depreciated 21 paise to close at 82.25 against the US currency on Wednesday, pressured by a strong greenback overseas and a negative trend in domestic equities.