In a departure from its exceptional 11-day winning streak, the Sensex confronted a downturn on Monday, shedding roughly 242 points resulting from profit-taking actions within the steel, banking, and telecom sectors, influenced by weak international traits. The benchmark index, which had not too long ago scaled document highs, witnessed a pullback. The 30-share BSE Sensex registered a decline of 241.79 points or 0.36%, settling at 67,596.84 after a day of risky buying and selling. At its lowest level in the course of the session, it fell by 305.8 points or 0.45% to succeed in 67,532.83.
Similarly, the broader Nifty retreated from its all-time excessive, concluding at 20,133.30, down by 59.05 points or 0.29%. Of its 50 constituents, 26 closed within the pink, whereas 24 confirmed advances.
The Sensex had not too long ago surged to an all-time excessive of 67,838.63 after an uninterrupted 11-day winning streak, whereas the Nifty achieved a document excessive of 20,192.35 on Friday, boosted by favorable macroeconomic information.
HDFC Bank bore the brunt of the decline among the many Sensex corporations, with a drop of 1.98%. Bharti Airtel (1.71%), Infosys (1.4%), Tata Steel (1.21%), ExtremelyTech Cement (1.19%), Wipro (1.17%), Kotak Mahindra Bank (1.02%), Reliance Industries, Tech Mahindra, and JSW Steel additionally contributed to the dip.
On the brighter aspect, Power Grid, Titan, Mahindra & Mahindra, and NTPC recorded positive factors.
Market analysts attribute the reversal to profit-taking in banking, realty, IT, and telecom shares, along with considerations about rising international crude oil costs, an uptick within the greenback index, and US treasury yields. Additionally, traders have scaled again their positions forward of the result of the US Federal Open Market Committee (FOMC) assembly on rates of interest scheduled for Wednesday.
Global headwinds and heightened valuations within the home indices following the current surge have contributed to investor unease, probably leading to additional profit-taking within the close to time period.
Vinod Nair, Head of Research at Geojit Financial Services, famous that the market’s confidence has been impacted by expectations of elevated demand in China and crude provide cuts, coupled with considerations about Fed charge hikes, as mirrored in elevated US bond yields.
In the broader market, the BSE smallcap gauge declined by 0.60%, whereas the midcap index slipped 0.27%.
Various sectoral indices noticed declines, with telecommunications falling by 1.86%, realty by 1.27%, commodities by 0.96%, teck by 0.92%, steel by 0.89%, and companies by 0.74%. On the opposite hand, Consumer Discretionary, FMCG, utilities, auto, and energy sectors skilled positive factors.
In worldwide markets, Seoul and Hong Kong concluded decrease, whereas Shanghai ended on a optimistic observe. European markets traded decrease, and the US markets closed in detrimental territory on Friday.
The international oil benchmark, Brent crude, inched up by 0.39% to succeed in USD 94.30 per barrel.
Foreign Institutional Investors (FIIs) turned patrons on Friday, buying equities price Rs 164.42 crore, based on change information.
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