Key indices edge down in choppy session
Sensex, Nifty end in red for 2nd session; Home currency weakness, sluggish global cues dampen mkt sentiment; textile stocks in focus; Kotak Bank spurts 3%
image for illustrative purpose
Mumbai: The BSE Sensex and NSE Nifty closed with modest losses for the second straight session on Wednesday amid lack of fresh buying triggers and a lacklustre trend overseas.
A weakening rupee, which tumbled for the third consecutive day, further sapped risk appetite. After swinging over 400 points in a choppy session, the 30-share BSE Sensex ended 29.22 points or 0.05 per cent lower at 58,250.26. Similarly, the broader NSE Nifty slipped 8.60 points or 0.05 per cent to 17,353.50.
Nestle India was the top loser among the Sensex components, shedding 2.44 per cent. Maruti Suzuki slipped 1.33 per cent after the country's largest carmaker said its total production in August declined by 8 per cent due to the global semiconductor shortage. Bajaj Finserv, Bajaj Auto, TCS, L&T, Infosys and Tech Mahindra were among the other laggards. On the other hand, Kotak Bank topped the winners' chart with a gain of 2.94 per cent, followed by Titan, NTPC, Sun Pharma, Axis Bank, HUL and SBI. In the broader markets, textile stocks were in focus after the Cabinet approved a production-linked incentive (PLI) scheme worth Rs 10,683 crore for the textiles sector with an aim to boost domestic manufacturing and exports.
"Domestic bourses witnessed modest contraction mainly led by profit booking in IT and auto stocks. Further, weak cues from global equities also weighed on investors' sentiment. Buying was seen in midcap and smallcap stocks as recent contraction in this space made risk reward proposition favourable for a number of stocks," said Binod Modi, head (strategy) at Reliance Securities.
Vinod Nair, head (research) at Geojit Financial Services, said: "Domestic market opened on a flattish note while the cautious trend in the global market forced Indian equities to trade lower amid lingering concerns over rising Covid cases and slowing economic recovery. However, supported by a recovery in broader markets, the key indices ended on a flat note. The Cabinet's approval of the PLI scheme for man-made fibres and technical textiles will help in improving the industry's outlook."
