The equity benchmark index Sensex extended the loss for the third day even as energy, power, auto, and financial stocks came under pressure.
The equity benchmark index Sensex extended the loss for the third day even as energy, power, auto, and financial stocks came under pressure. The 50-stock Nifty index also fell for the fourth day in a row. In the intraday trade, Sensex and Nifty turned negative for January after Wednesday’s fall of 0.5 per cent each. Sensex ended 208.43 points lower at 41,115.38, while Nifty dropped 62.95 points to 12,106.90. The BSE midcap and smallcap indices fell 0.3 per cent and 0.1 per cent, respectively. ONGC was the top loser in the Sensex pack, tumbling 5.13 per cent, followed by NTPC, Maruti, Kotak Bank, HDFC, Asian Paints, ICICI Bank and Axis Bank. On the other hand, Nestle India, TCS, Infosys, HCL Tech, SBI and Bharti Airtel ended with gains of up to 1.86 per cent. The stocks are correcting to their support levels ahead of the budget, experts said.
“We continue to remain cautious on the markets given that the indices are trading at stretched valuation and earnings season have begun on a muted note. The expectations from the budget are high this time around given the current economic slowdown. This is likely to drive momentum across sectors. Further, the earnings announcement from corporates is likely to induce stock specific volatility in the coming sessions,” Ajit Mishra, VP, Research, Religare Broking said.
“Nifty continued phase of correction as bears hold grip in the near term. Market breadth was on the negative side. In our last report we mentioned about vulnerability of Nifty for further correction as upward momentum has weakened. 12,100 zone is important zone and a decisive breach below the support zone would further put pressure on Nifty downwards and in that scenario test of 11,800 zone on the downside cannot be ruled out,” Manav Chopra, CMT, Head Research, Equity, Indiabulls Ventures said.
In other Asian markets including the stock exchanges in Hong Kong, Seoul, Shanghai and Tokyo settled with gains. Brent crude oil futures fell 0.67 per cent to $64.16 per barrel. The rupee was trading flat at 71.22 per US dollar. Meanwhile, in the previous session, Sensex settled 205.10 points, or 0.49 per cent, lower at 41,323.81; while the Nifty settled 54.70 points, or 0.45 per cent, lower at 12,169.85.