Sensex, Nifty decline for second day
Mumbai: Benchmark equity indices Sensex and Nifty closed lower for a second straight day on Tuesday due to selling in FMCG, metal and auto shares ahead of the RBI monetary policy. The 30-share BSE barometer declined further by 220.86 points or 0.37 per cent to close at 60,286.04, as 22 of its constituents ended in the red. The index opened flat amid mixed global trends. It moved in a range of 60,655.14 to 60,063.49 in the day.
The broader Nifty of the National Stock Exchange fell by 43.10 points or 0.24 per cent to settle at 17,721.50, with 31 of its scrips ending in the red. The index touched a high of 17,811.15 and a low of 17,652.55 during the session.
Profit-taking in the FMCG and auto majors was weighing on the sentiment while buying in select heavyweights in banking and financials capped the fall, analysts said.
"Sentiments in the domestic market were hammered by bears that dominated the US market post the release of strong jobs data. Global markets are currently driven by central bank policies and the surge in bond yields in expectation of more rate actions," said Vinod Nair, Head of Research at Geojit Financial Services.
A recovery was seen in the second half of the day as US futures inched higher as investors await US Fed Chief Jerome Powell's speech, Nair added.
Among Sensex stocks, Tata Steel fell the most by 5.23 per cent after posting weak financial results for the December quarter. The steel maker slipped into the red in the third quarter due to a drop in revenue and higher cost. ITC, Sun Pharma, Maruti, M&M, Tata Motors, HCL Tech, Wipro, Infosys, HUL, Bharti Airtel and Reliance were among the major losers. Banking stocks gained ahead of the RBI monetary policy announcement on Wednesday. Kotak Bank rose the most by 1.59 per cent, followed by IndusInd Bank (1.22 per cent), SBI (0.32 per cent) and HDFC Bank (0.10 per cent).
Bajaj Finance, Bajaj Finserv, L&T, SBI, TCS and HDFC Bank also closed higher.
"Participants are closely eyeing the outcome of the RBI meet for cues. However, indications are pointing toward prevailing choppiness to continue until Nifty decisively breaks the range of 17,550-17,900 levels," Ajit Mishra, VP - Technical Research, Religare Broking Ltd said.
