Sensex, Nifty extend losses for third day
MUMBAI: Benchmark indices stayed on the backfoot on Tuesday after the previous session’s rout as risk-off sentiment prevailed amid weak global cues and persistent foreign fund outflows. Lacklustre macroeconomic data and the rupee staying near its lifetime low further dampened buying appetite, traders said.
Global investors were in waitand-watch mode ahead of the US Federal Reserve’s policy decision on Wednesday amid expectations of accelerated rate hikes to cool scorching inflation, they added.
Sliding for the third straight session, the 30-share BSE Sensex dropped 153.13 points or 0.29% to settle at 52,693.57—its lowest since July 30, 2021. The NSE Nifty declined by 42.30 points or 0.27% to end at 15,732.10.
IndusInd Bank was the top loser among Sensex constituents, losing 2.12%, followed by Tech Mahindra, Reliance Industries, Maruti, HDFC twins, Asian Paints, and HUL.
In value terms, Reliance Industries and the HDFC duo accounted for the most of the benchmark’s losses.
On the other hand, Bharti Airtel topped the gainers’ list with a jump of 1.63%. NTPC, UltraTech Cement, M&M, Infosys, Dr Reddy’s and L&T were among the other gainers, climbing as much as 1.61%.
“Domestic market restrained from heavy sell-off as CPI data moderated on a month-onmonth basis and this had a calming down effect amidst global volatility. “However, elevated WPI data continued to dominate the broad market, which is cautious awaiting tomorrow’s outcome of Fed policy,” said Vinod Nair, head of research at Geojit Financial Services.
Retail inflation eased to 7.04% in May, mainly on account of softening food and fuel prices as the government as well as the RBI stepped in to control spiralling price rise by way of duty cuts and repo rate hike, as per official data released after market hours on Monday.
However, wholesale pricebased inflation surged to a record high of 15.88% in May as crude prices rose and heatwave brought about a spike in prices of vegetables and fruits, strengthening the possibility of a further interest rate hike by the RBI. “Markets ended marginally lower in a volatile trading session, in continuation of the prevailing trend. After the soft start, the benchmark made multiple attempts to recover but selling pressure in heavyweights capped the upside till the end. Markets are witnessing pressure ahead of the crucial US Fed meet outcome scheduled on Wednesday,” said Ajit Mishra, vice president-research, Religare Broking Ltd.