Markets wipe off gains, end in red

Mumbai: Equity benchmarks reversed early gains to close deep in the red on Monday, pressured by hectic selling in market heavyweights Reliance Industries and HDFC twins amid a mixed trend overseas.

Investors adopted a cautious approach ahead of inflation data and a slew of central bank meetings this week, experts said. Sliding for the second straight session, the 30-share BSE Sensex closed 503.25 points or 0.86 per cent lower at 58,283.42. Similarly, the broader NSE Nifty fell 143.05 points or 0.82 per cent to 17,368.25. Investors' wealth eroded by Rs1.06 lakh crore in single session as the mcap on BSE declined to Rs2,66,49,238.02 crore.

"The market breadth was negative, with 23 of the 30 Sensex counters closing lower. The sharp rise in Omicron cases in the UK is a concern for global markets. Meetings of the US Fed, ECB, Bank of England and Bank of Japan this week will give cues on the medium term trajectory of interest rates, bond yields and markets. In India, the relentless selling by FPIs (Rs33,799 crore in November and Rs17,644 crore up to December 10) has been the major headwind for the market, particularly for banking stocks, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

"Ahead of the release of domestic inflation data and key global central bank meetings, the benchmark indices dived into the negative zone digesting weak macroeconomic numbers and continued FII selling. In view of the rising global inflation, the policy outcome of key central bank meetings, especially the US Fed and European Central Bank (ECB), will be keenly monitored by the market," said Vinod Nair, head (research) at Geojit Financial Services.