IT, energy stocks take sheen off markets

Mumbai: The benchmark Sensex dived nearly 531 points to close at 48,348 on Monday, extending its losses to the third straight session due to massive selling in energy and IT stocks.

After swinging nearly 1,000 points during the session, the BSE benchmark settled with a loss of 530.95 points or 1.09 per cent at 48,347.59. The 30-share index opened over 375 points higher and hit the day's high of 49,263.15 before succumbing to selling pressure that took the index to the session's lowest point at 48,274.92. The broader NSE Nifty plunged 133 points or 0.93 per cent to end the session at 14,238.90. Over the last three sessions, the BSE Sensex has lost 1,444.53 points or 2.90 per cent and the NSE Nifty has shed 405.80 points or 2.77 per cent.

"Domestic equities were quite volatile today and gave up all early hours' gains. Investors continued to prefer in taking profits off the table ahead of union budget and F&O expiry. Barring pharma and select financials, most of key sectoral indices were in pressure today," Binod Modi, Head Strategy at Reliance Securities, said.

Vinod Nair, Head of Research at Geojit Financial Services stated that Indian markets witnessed a highly volatile trade due to weak global market and reports of Indo-China border tension. "Policy decisions of the US Fed meeting which will commence tomorrow will drive the global market in the coming days. We have seen Indian markets being highly volatile these days and this trend is expected to continue this week as we inch closer to the Union Budget," Nair added.