Unabated selling keeps mkts in red for 5th session

Mumbai: Equity market benchmark indices Sensex and Nifty stayed on the back foot for the fifth straight session on Thursday as investors offloaded metal, banking and finance stocks amid a lackluster trend in global markets. Heavy foreign fund outflows after a hike in securities transaction tax (STT) and short-term capital gains (STCG) tax also impacted markets’ sentiment negatively, traders said. However, strong buying in oil & stocks, energy and auto shares helped the indices offset some losses, they added.

After a sharp fall in intra-day trade, the 30-share BSE Sensex managed to recover some of the lost ground to settle 109.08 points or 0.14 per cent lower at 80,039.80, as a sharp rally in Tata Motors and Larsen & Toubro restricted its fall. During the day, Sensex tanked 671 points or 0.83 per cent to 79,477.83. The NSE Nifty dipped 7.40 points or 0.03 per cent to 24,406.10. Intra-day, it tumbled 202.7 points or 0.83 per cent to 24,210.80. “Overnight slump in US equities caused a major slump in domestic markets in early trade due to heavy profit-taking in banking, IT, metals and realty stocks. However, markets recouped most of its losses towards the end, with Sensex managing to close above the crucial 80k-mark amid buying in oil & gas and automobile stocks, indicating that investors are willing to bet on good fundamental sectoral stocks despite rising concerns of the stretched valuations of the Indian markets,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.