Markets tank more than 1% after 2-day rally amid profit-taking in banking & auto shares

Mumbai: Snapping its two-day winning run, benchmark Sensex tanked 836 points due to profit-taking in banking and auto shares as investors turned cautious ahead of the US Federal Reserve policy decision and unabated foreign fund outflows.

As the optimism over Donald Trump’s win in the US presidential polls waned, the BSE Sensex dropped by 836.34 points, or 1.04 per cent, to settle at 79,541.79. During the day, it slumped 958.79 points or 1.19 per cent to 79,419.34.

The NSE Nifty declined 284.70 points or 1.16 per cent to finish at 24,199.35.

From the 30-share Sensex pack, Tata Motors, Tech Mahindra, UltraTech Cement, JSW Steel, Sun Pharma, Asian Paints, IndusInd Bank and ICICI Bank were the major losers.

SBI emerged as the only gainer from the pack.

FIIs offloaded equities worth Rs 4,445.59 crore on Wednesday, according to exchange data.

The BSE midcap gauge declined 0.67 per cent and smallcap index went lower by 0.44 per cent.

All sectoral indices ended lower. Metal tumbled 2.54 per cent, utilities (1.82 per cent), commodities (1.65 per cent), realty (1.45 per cent), power (1.42 per cent) and auto (1.40 per cent).

A total of 2,134 stocks declined while 1,821 advanced and 98 remained unchanged on the BSE.

The rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against the US dollar on Thursday, as weak domestic equities and sustained foreign fund outflows dented market sentiment.