MUMBAI: Stock market today saw benchmark indices Sensex and Nifty decline nearly 1 per cent, snapping a two-day rally as profit-taking in banking, IT, and auto shares dragged markets lower.
The 30-share BSE Sensex dropped 624.82 points or 0.76 per cent to close at 81,551.63 in a volatile session. During the day, it fell as much as 1,054.75 points or 1.28 per cent to a low of 81,121.70. The NSE Nifty also lost 174.95 points or 0.70 per cent to end at 24,826.20.
Investors turned cautious ahead of the release of industrial and manufacturing production data for April, due on Wednesday, and the first-quarter GDP numbers expected later this week, analysts said.
Among Sensex constituents, UltraTech Cement declined the most, falling 2.21 per cent, followed by ITC, which dropped 2.01 per cent. Tata Motors, NTPC, Axis Bank, HCL Tech, Mahindra & Mahindra, HDFC Bank, ICICI Bank, and L&T were also among the major laggards.
On the other hand, IndusInd Bank, Sun Pharma, Adani Ports, Nestle, and Asian Paints ended in the green.
“The domestic market witnessed volatility and snapped a two-day rally, as investors opted for profit booking driven by valuation concerns and weakness across Asian markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
Mid- and small-cap segments showed relative resilience, supported by better-than-expected Q4 earnings and some moderation in valuations, Nair added.
In Asia, South Korea’s Kospi and Shanghai’s SSE Composite index ended in the red, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng closed higher. European markets were trading in positive territory. US markets remained shut on Monday for Memorial Day.
Foreign institutional investors bought equities worth Rs135.98 crore on Monday, according to exchange data.
Global oil benchmark Brent crude rose 0.51 per cent to $65.07 a barrel.
Stock market today fell sharply as traders locked in profits ahead of key economic data releases, highlighting near-term caution in Indian equity markets.
