Sensex, Nifty fail to hold opening gains, IT stocks drag; check what led to last hour fall on D-St

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Published: May 26, 2020 4:21 PM

The broader market,  mid-caps and small-caps, outperformed the benchmarks, as their sectoral indices on BSE closed 1.21 per cent and 0.63 per cent higher. In comparison, BSE Sensex ended 0.21 per cent lower

Bharti AirtelBharti Airtel was the top Sensex laggard, down 5.71 per cent, followed by TCS, Bajaj Finance, Sun Pharma and Hero MotoCorp

Headline indices BSE Sensex and Nifty 50 settled lower in Tuesday’s volatile trade after shedding all their morning gains despite positive global cues. Sensex dropped 477 points from the day’s high of 31,086, to end 63 points lower at 30,609. While the broader Nifty 50 index finished at 9,029, after hitting day’s high of 9,162. IT stocks remained under pressure with Nifty IT declining nearly 2 per cent, dragged down by heavyweights such as TCS, Tech Mahindra, Infosys and HCL Tech. The biggest losers on Nifty were Bharti Airtel, Bajaj Finserv, TCS, Bajaj Finance and Sun Pharma, down in the range of 2-6 per cent. “We feel the upcoming derivatives expiry will keep the participants on their toes. We reiterate our cautious view and suggest keeping a close watch on the banking index for cues,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

Bharti Airtel top Sensex loser: Bharti Airtel was the top Sensex laggard, down 5.71 per cent, followed by TCS, Bajaj Finance, Sun Pharma and Hero MotoCorp. While Titan was the top Sensex gainer, up 5 per cent to Rs 891.6. UltraTech Cement, IndusInd Bank, Nestle India and ITC were among the other gainers. 

Metal stocks shine: Most of the sectoral indices finished trade in positive territory. Nifty IT index dropped nearly 2 per cent dragged by TCS, Tata Elxsi and Infosys. While the Nifty Metal index advanced 2.68 per cent led by gains in Jindal Steel and Power, JSW Steel and NMDC. “The metal index outperformed in today’s trade. This was driven partly due to measures announced to support the Chinese economy, which accounts for a major portion of the global demand for metals,” said Vinod Nair, Head of Research at Geojit Financial Services.

Broader market: The broader market,  mid-caps and small-caps, outperformed the benchmarks, as their sectoral indices on BSE closed 1.21 per cent and 0.63 per cent higher. In comparison, BSE Sensex ended 0.21 per cent lower.

Market outlook: Nifty 50 index traded within this range throughout the day. “Traders are advised to look for stock-specific buying opportunities and trade with a positive bias. On the higher side, 9200 remains the immediate hurdle and once this resistance in taken out, we can expect some momentum towards 9300-9350 in the near term,” Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking.

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