Markets lose amid concerns of economic slowdown

Mumbai: Market benchmark Sensex dropped by 72 points to close at 40,284.19 on Monday due to losses in private banks, IT and energy stocks amid concerns over the economic slowdown.

The 30-share index had opened on a firm note but turned negative in afternoon session due to profit booking in IT, banking and oil and gas stocks.

Similarly, the broader NSE Nifty slipped 10.95 points, or 0.09 per cent, to end at 11,884.50. As many as 29 of its constituents advanced while 20 dropped.

Yes Bank was among the top losers in the Sensex pack, falling up to 4.08 per cent, followed by Bajaj Auto, M&M, Hero MotoCorp, HDFC Bank, ONGC and TCS which declined up to 2.05 per cent.

On the other hand, Bharti Airtel, Tata Steel, Sun Pharma, PowerGrid, IndusInd Bank, Axis Bank, SBI, Vedanta and Tata Motors rose up to 4.60 per cent. Broader BSE midcap and smallcap indices outperformed benchmarks, rising up to 0.44 per cent.

Despite positive cues from global markets, sentiment in the domestic market was subdued on account of multiple reports suggesting that the pace of India's economic growth may falter further, traders said.

"Post Q2 results, market seems to have entered an indecisive period of trade having rallied well in the last two months and lack of major data releases this week.

Globally, investors are awaiting triggers on resolution of US-China trade tension and future interest rate trajectory of US central bank.

In the short-term volatility may stay but banks are expected to do well given a new life to distressed asset," Vinod Nair, Head of Research, Geojit Financial Services said.

Markets remained flat throughout the day as investors were cautious, Paras Bothra, President of Equity Research, Ashika Stock Broking said.