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Banks and pharma drag markets down

Reliance Industries declined 2.58% and was the top loser in the Sensex pack, which was followed by SBI, UltraTech Cement, IndusInd Bank, NTPC and Sun Pharma. On the flip side, shares of Maruti Suzuki surged over 7% in the day’s trade, while those of M&M and Tech Mahindra gained above 3% and 1%, respectively.

Banks and pharma drag markets down
Broader BSE Midcap closed 0.22% lower, while the BSE small-cap gained 0.18%. The overall market breadth also turned negative on Tuesday as 1,602 stocks advanced and 1,729 scrips declined in the BSE.

The domestic equity markets ended in the red territory on Tuesday primarily because of banking, oil & gas, and pharma stocks. At close, the BSE Sensex was down 396.34 points at 60,322.37 with 21 of its constituents ending in the red. The Nifty ended 110.30 points lower at 17,999.20.

Reliance Industries declined 2.58% and was the top loser in the Sensex pack, which was followed by SBI, UltraTech Cement, IndusInd Bank, NTPC and Sun Pharma. On the flip side, shares of Maruti Suzuki surged over 7% in the day’s trade, while those of M&M and Tech Mahindra gained above 3% and 1%, respectively.

Vinod Nair, head of research, Geojit Financial Services, said, “The domestic market started trading between gains and losses before slipping into deep red with heavy selling in banking and pharma stocks. RBI’s statement that equity market valuations is stretched added to the pressure.”

Sectorally, the Bank Nifty was the top loser, shedding over 1% in the intra-day session on Tuesday. The Nifty Pharma and Nifty Energy were among the other top losers, down over 1% each. On the contrary, the Nifty Auto pack advanced above 2% on strong buying interest from investors.

Broader BSE Midcap closed 0.22% lower, while the BSE small-cap gained 0.18%. The overall market breadth also turned negative on Tuesday as 1,602 stocks advanced and 1,729 scrips declined in the BSE.

During the trading session on Monday, foreign institutional investors (FIIs) net purchased shares worth Rs 424.74 crore, and the domestic institutional investors (DIIs) net bought shares worth Rs 1,524.67 crore in the Indian equity markets, as per the provisional data available on the exchanges.

Elsewhere in Asia, the markets ended with mixed figures on Tuesday. Hong Kong’s Hang Seng rose 1.27% and Japan’s Nikkei 225 rose 0.11%. On the other hand, China’s Shanghai Composite ended lower by 0.33%.

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