Sensex, Nifty Fall For Second Straight Session Dragged By IT Shares

The Indian equity benchmarks fell for second straight session on Tuesday dragged by weakness in information technology, FMCG and financial services shares. The benchmarks staged a gap up opening however owing to weakness in heavyweights like HDFC, HDFC Bank, Infosys, HCL Technologies, TCS and UltraTech Cement in noon deals, the benchmarks erased intraday gains. The Sensex fell over 1,000 points from the day’s highest level and Nifty 50 index touched an intraday low of 14,207 after hitting an intraday high of 14,527.

The Sensex fell 0.51 per cent or 244 points to end at 47,706 and Nifty 50 index declined 63 points or 0.44 per cent to close at 14,296.

“Nifty witnessed lack of momentum and stayed in the range between 14,200 to 14,500. Nifty is going through a sideways correction. It is prudent to wait for a decisive break out of the range and technical factors to improve before attempting to enter from a short to medium-term perspective,” Ashis Biswas, head of technical research at CapitalVia Global Research told NDTV.

Six of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty IT index’s 1.4 per cent decline. Nifty FMCG, Financial Services, Bank, Private Bank and PSU Bank indexes also ended with a negative bias.

On the other hand, Nifty Pharma, Auto, Metal, Realty and Media indices ended higher

Mid- and small-cap shares outperformed their larger peers as Nifty Midcap 100 index rose 0.3 per cent and Nifty Smallcap 100 index rose 1 per cent.

UltraTech Cement was top Nifty loser, the stock fell 5 per cent to Rs 6,189. HCL Technologies, HDFC, Grasim Industries, Shree Cements, Tech Mahindra, Hindustan Unilever, HDFC Bank, Tata Motors, Eicher Motors, ITC, Infosys, Asian Paints, UPl and Divi’s Labs also fell between 1-3.4 per cent.

On the flipside, Dr Reddy’s Labs, Bajaj FInserv, HDFC Life, Bajaj Finance, Tata Consumer Products, Mahindra & Mahindra, Maruti Suzuki, Bajaj Auto and Larsen & Toubro were among the gainers.

The overall market breadth was positive as 1,645 shares ended higher while 1,232 ended lower on the BSE.

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