IT, realty weigh on markets, Sensex down over 400 points in opening trade
Analysts say markets preparing to move into the New Year with caution due to high uncertainty
Mumbai: The domestic benchmark indices opened lower on Tuesday as selling was seen in IT, realty, auto, financial service, FMCG, media and private bank sectors on Nifty.
The 30-share BSE benchmark Sensex tanked 468.14 points to 77,779.99 in initial trade. The NSE Nifty dropped 117.05 points to 23,527.85.
According to market experts, “December has been weak for equity markets globally. S&P 500 is down by 2.34 per cent and Nifty is down by 2.6 per cent. “Markets are preparing to move into the New Year with caution since uncertainty is high and valuations are stretched,” they noted.
Nifty Bank was down 191.50 points or 0.38 per cent at 50,761.25. Nifty Midcap 100 index was trading at 56,944.80 after dropping 244.95 points or 0.43 per cent. Nifty Smallcap 100 index was at 18,618.95 after dropping 21 points or 0.11 per cent. On the sectoral front, buying was seen in the PSU bank, pharma, metal, energy, commodities, PSE and Healthcare sector.
In the Sensex pack, Tech Mahindra, HCL Tech, TCS, Infosys, Zomato and NTPC were the top losers. Whereas, Tata Motors, ITC, Tata Steel, SBI, Kotak Mahindra Bank and Nestle India were the top gainers.
The Dow Jones declined 0.97 per cent to close at 42,573.73. The S&P 500 declined 1.07 per cent to 5,906.94 and the Nasdaq declined 1.19 per cent to close at 19,486.79 in the previous trading session. In the Asian markets, China was trading in red while Hong Kong was trading in green. “The high US bond yield and strong dollar will ensure that FIIs will continue to sell on every rise. DII buying will not be strong enough to take the market much higher,” said experts. Foreign institutional investors (FIIs) sold equities worth Rs 1,893.16 crore on December 30, while domestic institutional investors bought equities worth Rs 2,173.86 crore on the same day.
Global oil benchmark Brent crude climbed 0.30 per cent to USD 74.39 a barrel. The 30-share BSE benchmark tumbled 450.94 points or 0.57 per cent to settle at 78,248.13 on Monday. The Nifty declined 168.50 points or 0.71 per cent to 23,644.90.
