Sensex and Nifty decline on caution ahead of Union budget

Mumbai: Stock markets closed lower on Monday with benchmark Sensex dropping 102 points due to selling in index heavyweight Reliance Industries and Kotak Bank on muted earnings and caution ahead of the Union Budget.

Falling for the second day in a row, the 30-share BSE Sensex dropped by 102.57 points or 0.13 per cent to settle at 80,502.08. The broader NSE Nifty dipped 21.65 points or 0.09 per cent to 24,509.25.

Among Sensex shares, Reliance Industries declined over 3 per cent after the company reported a 5 per cent drop in its June quarter net profit. Kotak Mahindra Bank also fell more than 3 per cent after its June quarter earnings failed to cheer investors. ITC, State Bank of India, HCL Technologies and IndusInd Bank were the other big laggards in Sensex shares.

However, gains in HDFC Bank after its financial results, and continued buoyancy in Infosys Ltd restricted the losses.

NTPC, UltraTech Cement, and Mahindra & Mahindra also advanced. HDFC Bank climbed over 2 per cent after the company’s consolidated net profit grew 33.17 per cent to Rs 16,474.85 crore in the June 2024 quarter.

In the broader market, the BSE midcap gauge jumped 1.27 per cent and smallcap index climbed 0.83 per cent. Among the indices, Energy declined by 0.67 per cent, Realty by 0.53 per cent, FMCG by 0.27 per cent and Bankex by 0.27 per cent.

Commodities, Consumer Discretionary, Financial Services, Healthcare, Industrials, Utilities and Power sector indices were among the gainers.

The rupee consolidated in a narrow range to settle 4 paise higher at 83.66 against the American currency on Monday, as crude oil prices and the US dollar retreated from their elevated levels.