Investors chary of uncertainty

Mumbai: Stock market benchmark Sensex declined by 616.75 points on Monday, snapping its two-day gaining streak due to selling in metal and banking shares amid weak trends in the global markets. Taking a breather after a record-breaking rally, the 30-share BSE Sensex declined by 616.75 points or 0.83 per cent to settle at 73,502.64 due to profit taking.

During the day, the barometer tanked 685.48 points to 73,433.91 points. The broader Nifty slumped by 160.90 points or 0.72 per cent to close at 22,332.65.

“In the short term, Nifty could experience weakness, possibly leading to a decline toward the range of 22,200-22,250 points. Looking at the upside, immediate resistance is identified at 22,400 based on closing prices,” said Rupak De, senior technical analyst at LKP Securities.

“Continued sell-off in global markets due to uncertainty over rate cuts impacted the domestic market sentiment, which is currently at an overbought level. The stronger-than-expected US non-farm payroll data and caution ahead of the release of US inflation data tomorrow kept investors on the edge. The broader market continued its underperformance due to valuation concerns, while investors are rebalancing their portfolios to include safe haven assets like gold,” said Vinod Nair, Head of Research, Geojit Financial Services.

Markets were closed on Friday for Mahashivratri. In the broader market, the BSE small-cap gauge declined 2.01 per cent and midcap index dipped 0.24 per cent. Among sectoral indices, telecommunication plunged by 2.40 per cent, metal by 1.39 per cent, utilities by 1.25 per cent, realty by 1.16 per cent, and energy by 1.15 per cent. Healthcare was the only gainer.