Sensex falls over 300 points, Nifty below 11,600; key reasons

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Updated: October 22, 2019 4:22:20 PM

The benchmark equity indices -- Sensex and Nifty -- on Tuesday ended on a negative note tracking weakness in IT, metal and auto sectors even as healthcare, banks, and consumer durables saw healthy buying interest.

The massive fall in Infosys’ shares following a complaint against the company’s chief executive also dragged the bourses.

The benchmark equity indices — Sensex and Nifty — on Tuesday ended on a negative note tracking weakness in IT, metal and auto sectors even as healthcare, banks, and consumer durables saw healthy buying interest. The massive fall in Infosys’ shares following a complaint against the company’s chief executive also dragged the bourses. Sensex plunged 334.54 points to end at 38,963.84, while Nifty slipped 71.50 points to 11,590.35. Top five Sensex gainers were Dr Reddy’s, ICICI Bank, BPCL, Titan and Cipla, while the major losers were Infosys, Tata Motors, Bajaj Finserv, Bharti Airtel and HCL Technologies.

“We expect markets to remain volatile in the near term. We believe going forward market trend will be dictated by the on-going earning season, outcome of state election, US-China trade deal and development on the Brexit deal. Market participants would continue to track currency and crude price movement,” Ajit Mishra Vice President, Research, Religare Broking said.

Also read: Infosys share price plunges most in 6 years after whistle blowers allege corporate malpractice by CEO

“Bulls took a breather near the previous swing high of 11,700 zone. we have mentioned 11,700 as the near term resistance which has been working so far. index has risen from the levels of 11,100 to 11,700 zone and few days of consolidation cannot be ruled out going ahead. Broader trend continues to remain positive and traders should look at declines as opportunity to build long positions. Market breadth was in balance. 11,470 zone is the near support zone on the downside,”  Amit Shah, Technical Research Analyst with Indiabulls Ventures said.

Meanwhile, the Indian rupee appreciated by 22 paise to 70.92 against the US dollar intraday. The brent crude futures, the global oil benchmark, rose 0.36 per cent to $59.17 per barrel. The equities in European markets also traded on mixed note in their respective early deals.

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