Late selling keeps mkts in red

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. 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. The market capitalization (mcap) of BSE-listed companies was at Rs441.35 lakh cr or $5.16 trn.

“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, Sr V-P (research), Religare Broking Ltd.

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 FII 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. 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,” said Vinod Nair, head (research), Geojit Financial Services. As many as 23 of its constituents closed lower, while seven closed with gains. “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,” said Rupak De, Senior Technical Analyst, LKP Securities.