Mumbai: Benchmark Sensex declined by nearly 451 points on Monday due to selling in heavyweight stocks HDFC Bank, ICICI Bank and Reliance Industries, weak global trends and unabated foreign fund outflows. In a volatile trading session, the 30-share BSE barometer dropped by 450.94 points or 0.57 per cent to settle at 78,248.13. As many as 23 of its constituents closed lower while seven closed with gains.
The barometer opened lower but recovered losses in the mid session to hit a high of 79,092.70. The index failed to hold onto gains in the second half due to selling in bluechips and tanked 621.94 points or 0.79 per cent to touch a low of 78,077.13. The NSE Nifty declined 168.50 points or 0.71 per cent to settle at 23,644.90 as 38 of its components fell and 11 closed higher.
Among Sensex shares, Tata Motors fell the most by 2.24 per cent. Titan, Tata Steel, State Bank of India, Mahindra & Mahindra, NTPC, ICICI Bank, Maruti, HDFC Bank, Reliance Industries and Infosys were among the laggards. Zomato, Tech Mahindra, HCL Tech and IndusInd Bank were among the gainers.
"The market began the week on a volatile note, ending with a loss of over half a per cent. After a flat opening, the Nifty gained ground in the first half but faced selling pressure in heavyweight stocks across sectors, reversing its trajectory," Ajit Mishra – SVP, Research, Religare Broking Ltd, said. The BSE smallcap gauge declined 0.47 per cent and midcap index went up by 0.13 per cent.
"Prevailing subdued sentiment on account of FIIs selling and a strengthening dollar continued to drag the market. While IT & pharma gained as investors continued to bet on defensive stocks to prevent short-term volatility," Vinod Nair, Head of Research, Geojit Financial Services said.
Concerns over high valuation are impacting the broad market. The upcoming policy announcements in the US and domestic Q3 earnings will be keenly watched by investors, Nair added. Among sectoral indices, metal tanked 1.89 per cent and capital goods dropped 1.84 per cent. Services (1.46 per cent), auto (1.36 per cent), industrials (1.32 per cent) and commodities (1.16 per cent) also closed lower.
BSE Healthcare, IT, telecommunication, teck and BSE Focused IT were the gainers. As many as 2,636 stocks declined while 1,487 advanced and 144 remained unchanged on the BSE. "The Nifty remained volatile during the session, oscillating between 23,600 and 23,900. On the daily chart, the index has slipped below its recent consolidation. Additionally, it continues to trade below the 200-DMA, indicating weak sentiment," Rupak De, Senior Technical Analyst, LKP Securities said.
Foreign institutional investors (FIIs) offloaded equities worth Rs 1,323.29 crore on Friday, according to exchange data. In Asian markets, Seoul, Tokyo and Hong Kong settled lower while Shanghai ended higher. European markets were trading lower. US markets ended in the negative territory on Friday. Global oil benchmark Brent crude dipped 0.05 per cent to USD 74.13 a barrel.
