Sensex snaps 2-day rally, down 600 points

The 30-share BSE Sensex dipped by 0.83% to settle at 73,502.64 due to profit realisation

MUMBAI: Stock market benchmark Sensex declined by 616.75 points on Monday, snapping its two-day gaining streak due to selling in metal and banking shares amid weak trends in the global markets.

Taking a breather after a record-breaking rally, the 30-share BSE Sensex declined by 616.75 points or 0.83 per cent to settle at 73,502.64 due to profit taking. During the day, the barometer tanked 685.48 points to 73,433.91.

The broader Nifty slumped by 160.90 points or 0.72 per cent to close at 22,332.65. “In the short term, Nifty could experience weakness, possibly leading to a decline toward the range of 22,200-22,250. Looking at the upside, immediate resistance is identified at 22,400 based on closing prices,” Rupak De, senior technical analyst at LKP Securities, said.

Among Sensex firms, Power Grid and Tata Steel fell more than 2 per cent. HDFC Bank, State Bank of India, IndusInd Bank, Hindustan Unilever and NTPC were among the major laggards.

Nestle, Bajaj Finserv and Bajaj Finance were among the gainers.

“Continued sell-off in global markets due to uncertainty over rate cuts impacted the domestic market sentiment, which is currently at an overbought level. The stronger-than-expected US nonfarm payroll data and caution ahead of the release of US inflation data tomorrow kept investors on the edge, “said Vinod Nair, head of research, Geojit Financial Services. “The broader market continued its underperformance due to valuation concerns, while investors are rebalancing their portfolios to include safe haven assets like gold,’’ he added. In the broader market, the BSE smallcap gauge declined 2.01 per cent and midcap index dipped 0.24 per cent.

Among sectoral indices, telecommunication plunged by 2.40 per cent, metal by 1.39 per cent, utilities by 1.25 per cent, realty by 1.16 per cent, and energy by 1.15 per cent. Healthcare was the only gainer. Shares of State Bank of India settled 2 per cent lower on Monday after the Supreme Court trashed the public sector lender’s plea seeking an extension of time to disclose the details of electoral bonds to the Election Commission and ordered it to give the data related to poll bonds by close of business hours on March 12. he apex court also put the SBI on notice and said it may be inclined to proceed against the lender for “wilful disobedience’’ of its February 15 verdict, if the bank failed to comply with its directions and timelines.

Shares of JM Financial settled 10 per cent lower on Monday after Sebi had barred JM Financial Ltd from accepting new mandates to act as a lead manager for the public issue of debt securities, for flouting regulatory norms.

Also, scrip of Alembic Pharmaceuticals finished more than 2 per cent lower on Monday after the US Food and Drug Administration issued a Form 483 with four observations for the drugmaker’s Gujarat plant.

Among Sensex firms, Power Grid and Tata Steel fell over 2%. HDFC Bank, SBI, HUL and NTPC were among the major laggards