Markets halt 3-day rally
MUMBAI: Market benchmarks wilted under selling pressure on Tuesday after a three-day rally as participants took money off the table amid surging oil prices and weak European equities.
Investors were also cautious ahead of release of gross domestic product (GDP) data, while a depreciating rupee further weighed on sentiment, traders said.
The 30-share BSE Sensex tumbled 359.33 points or 0.64% to finish at 55,566.41.
The broader NSE Nifty declined 76.85 points or 0.46% to end at 16,584.55.
Sun Pharma was the top laggard among the Sensex stocks, losing 3.11%, followed by Kotak Mahindra Bank, HDFC, Titan, Infosys, SBI, Axis Bank, and Reliance Industries. In contrast, M&M, NTPC, PowerGrid, Tech Mahindra, Tata Steel and ITC were among the gainers, climbing as much as 3.61%.
Global markets braced for a further push to inflation as crude oil prices raced past $120 per barrel after the EU agreed on a partial ban on Russian oil imports. Elevated oil prices would put additional fiscal pressure on energy importers like India, analysts said.
“The domestic market failed to hold on to the recovery mode as it was awaiting the release of GDP data. A hike in oil prices due to the EU’s ban on Russian oil imports would act as a headwind in taming global inflation. Changes in policy by central banks would be a major factor to be monitored in the coming days,” said Vinod Nair, the head of research at Geojit Financial Services.
In the broader market, the BSE smallcap gauge went higher by 0.68% and the midcap index jumped 0.49%.
Among BSE sectoral indices, power declined by 2.17%, utilities 1.95%, bank 1.06%, and finance 0.80%.
On the other hand, realty jumped by 2.11%, followed by metal (1.78%), auto (0.87%) and telecom (0.84%).
“Profit-taking dragged the benchmark indices in an otherwise clueless market. With corporate earning season nearing an end, traders have started hunting for new clues to drive the market,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.