Key indices drift lower as bank, auto stocks weigh

Mumbai|: Equity indices languished for the second straight session on Tuesday as investors pared back their exposure to riskier assets amid a cautious trend in global markets due to a fresh spurt in Covid-19 cases in many countries.

A weakening rupee and the fiscal impact of the government's new stimulus measures also sapped risk appetite, traders said. The 30-share BSE Sensex ended 185.93 points or 0.35 per cent lower at 52,549.66. Similarly, the broader NSE Nifty tumbled 66.25 points or 0.42 per cent to 15,748.45.

"Despite the government's stimulus package to revive stressed sectors, domestic equities continued to trade weak due to new coronavirus outbreaks in Asia. Extension of emergency credit guarantee scheme to MSMEs and subsidised financing to small borrowers will be a boost to the microfinance and NBFC sectors. Amid a broad-based selling in the market, the healthcare sector managed to remain positive due to the extended government support," said Vinod Nair, head (research) at Geojit Financial Services.

Arijit Malakar, head (research) at Ashika Stock Broking, adds: "Domestic markets remained weak in line with Asian markets as investors were concerned with the more infectious Delta variant of the coronavirus and the re-imposition of restrictions in parts of Asia, Europe, South Africa and South America."