After the recent rally to record highs, domestic benchmark equity indices snapped a 5-day winning streak and closed in the red in a volatile market on Tuesday, dragged by a pullback in high-weightage IT stocks and index-heavyweight Reliance Industries.
The 30-share BSE benchmark Sensex declined 199 points or 0.27% to settle at 73,129. The broader NSE Nifty dropped 65 points or 0.29% to end at 22,032.
IT stocks took a breather, falling 1.3%, after jumping 7.1% in the last two sessions on the back of better-than-expected results from the top four software companies.
HCLTech, Wipro, Infosys, Tech Mahindra, and TCS were among the top Sensex losers, dropping between 1-2%.
Nifty Bank and financial services stocks were muted, ahead of the results of the top private lender and the highest weighted stock in Nifty 50, HDFC Bank, due later in the day.
Among individual stocks, Jio Financial Services closed 6.7% lower after the company reported a 56% sequential fall in consolidated net profit for the quarter ended December to Rs 294 crore.
Federal Bank and Bank of Maharashtra also declined post-December quarter results. The market capitalisation of all listed companies on BSE declined by Rs 1.12 lakh crore to Rs 374.97 lakh crore.
The market breadth was skewed in favour of the bears. About 2,502 stocks declined, 1,340 gained, and 87 remained unchanged on the BSE.
Expert Views
“The broad market exhibited profit booking following a good performance by the IT sector amid weak global cues. Investors are contemplating whether the current euphoria in markets has gone farfetched, especially with elevated domestic valuations in mid & small caps. FII flows are mixed due to a lack of fresh triggers. Oil prices stayed firm amid undeterred geopolitical tensions. The latest IIP growth signals near-term softness,” said Vinod Nair of Geojit Financial Services.
Aditya Gaggar, director of Progressive Shares, said, “On the daily chart, the index has formed a spinning top candlestick pattern with a probability of a bearish divergence. For the time being, level of 22,120 will act as resistance while the downside seems to be protected at 21,930.”
Global Markets
Asian shares hit a one-month low on Tuesday. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.4% to its lowest since mid-December. The Hang Seng dropped 2%, while Japan’s Nikkei snapped a six-session winning streak and closed 0.66% lower.
US markets were shut for a holiday on Monday, but S&P 500 futures were 0.5% lower in Asia trade on Tuesday and Nasdaq 100 futures dropped 0.6%.
Oil Prices Rise
Oil prices edged higher on Tuesday as the Middle East crisis escalated and ship tracking data showed more tankers altering course away from the Red Sea in response to attacks in the area by Yemen’s Houthi movement.
Brent crude futures rose $1.01, or about 1.25%, to $79.13 a barrel. US West Texas Intermediate crude was up 65 cents, or 0.91%, at $73.45 per barrel.
Rupee Dips
The Indian rupee declined 21 paise to $83.07 against the US dollar, bogged down by the dollar’s rally on the back of higher US Treasury yields and tepid risk.
(With inputs from agencies)
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