Investors in wait n watch mode ahead of GDP data

Paring Early Gains

- The barometer opened higher and touched 59,483.72 level in line with gains in Asian markets

- Later, index fell 688 pts to low of 58,795.97

- BSE Sensex declined by 326.23 pts or 0.55% to 4-mth low of 58,962.12

- NSE Nifty fell 88.75 pts or 0.51% to 17,303.95

- As many as 33 of Nifty-50 stocks declined

- Tata Steel, Bajaj Finserv, ITC, NTPC, Airtel, Tech M, Titan, Axis Bank and Bajaj Finance were laggards

- Asian Paints, M&M, Power Grid, UltraTech Cement, Tata Motors and HDFC among gainers

Mumbai: Benchmark indices Sensex and Nifty slid for the eighth straight day to close at four-month lows on Tuesday as growing worries over interest rate hikes to stem inflation and FII selling unnerved investors.

Mixed global cues, selling in index heavyweights and caution by investors ahead of the release of key macroeconomic data waylaid the key indices to their longest losing run in more than three-and-a-half years. Investor wealth eroded by Rs 10.58 lakh crore in the eight-day decline. Sensex and Nifty, previously, had fallen for a record nine days on the trot in May 2019. Paring its early gains, the BSE Sensex declined by 326.23 points or 0.55 per cent to settle at a four-month low of 58,962.12. The barometer opened higher and later touched a high of 59,483.72 in line with gains in Asian markets.

However, European stocks opened lower and US futures also declined amid a rise in bond yields which pulled down the 30-share index around 688 points to touch a low of 58,795.97. The NSE Nifty also retreated from the day's highs to settle at a more than four-month low of 17,303.95, showing a loss of 88.75 points or 0.51 per cent. As many as 33 of Nifty stocks declined.

From the Sensex pack, Reliance Industries fell the most by 2 per cent. Tata Steel, Bajaj Finserv, ITC, NTPC, Bharti Airtel, Tech Mahindra, Titan, Axis Bank and Bajaj Finance were among the other major laggards. Asian Paints, Mahindra & Mahindra, Power Grid, UltraTech Cement, Tata Motors and HDFC were the major gainers. “Global investors’ interest in the equity market is weakening due to the slowdown in the economy, led by high inflation and contractionary monetary policy. Inflows are being diverted to safe assets, and corporate earnings growth is dropping, affecting the performance of the stock market and demanding downgrade in valuation. The double whammy for India is that it is expensive compared to other EMs, resulting in underperformance among the global market,” said Vinod Nair, head (research) at Geojit Financial Services.

Analysts said that weak sentiment continued to prevail as traders wary of high inflation concerns unwound their positions in commodity stocks such as metals and oil & gas. Investors are also cutting their long positions due to high valuations of India market compared to other markets, they added.

“The Nifty opened on a flat note and witnessed continued selling pressure throughout the day to close the day on a negative note for the eight consecutive trading session,” said Jatin Gedia, technical research analyst, Sharekhan by BNP Paribas.