Stock markets decline in early trade after two days of rally

Equity benchmarks Sensex and Nifty slipped in early trade after a two-day rally, dragged by IT stocks. Weak volumes amid a holiday-shortened week and FII selling weighed on sentiment, despite firm Asian markets and continued DII buying

Mumbai: Equity benchmark indices Sensex and Nifty declined in early trade on Tuesday after two days of sharp rally, dragged by IT stocks.

The 30-share BSE Sensex dropped 116.57 points to 85,450.91 in early trade. The 50-share NSE Nifty declined by 27.15 points to 26,145.25.

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Market experts said that trading volumes are expected to remain subdued amid the holiday-shortened week.

From the 30-Sensex firms, Infosys, Tata Consultancy Services, Asian Paints, HCL Tech, Eternal and Bharti Airtel were among the major laggards.

However, Bajaj Finance, Power Grid, UltraTech Cement and Tata Steel were among the gainers.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index traded in positive territory.

US markets ended higher on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 457.34 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, remained buyers as they bought equities worth Rs 4,058.22 crore.

Brent crude, the global oil benchmark, dipped 0.08 per cent to USD 62.02 per barrel.

On Monday, the Sensex jumped 638.12 points or 0.75 per cent to settle at 85,567.48. The Nifty climbed 206 points or 0.79 per cent to close above the 26,000 mark at 26,172.40.