Market slips for 3rd day despite firm global cues

Mumbai: Equity benchmarks Sensex and Nifty gave up early gains to end marginally lower on Tuesday, tracking losses in financial stocks despite a firm trend in global markets.

A weakening rupee and selling by foreign investors also weighed on Dalal Street, traders said. Falling for the third session on the trot, the 30-share BSE Sensex ended 31.12 points or 0.06 per cent lower at 50,363.96.

The broader NSE Nifty slipped 19.05 points or 0.13 per cent to close at 14,910.45. L&T was the top loser in the Sensex pack, shedding 1.56 per cent, followed by ICIC Bank, SBI, HDFC Bank, HDFC, Axis Bank, Kotak Bank and Bajaj Finserv. On the other hand, Asian Paints, Dr Reddy's, HUL, HCL Tech, TCS and UltraTech Cement were among the gainers, spurting up to 4.87 per cent. Domestic equities gave up initial gains and traded flat towards the final hours of the day despite favourable cues from global equities, said Binod Modi - Head Strategy at Reliance Securities.

"Financials once again dragged the markets. Notably, IT stocks were in focus today mainly on expectations of sustained earnings momentum in 4QFY21E and benefits from possible fall in INR. "In our view, increasing concerns with regards to resurgence of Covid-19 cases in various parts of the country and resulted restrictions could be a near term risk for domestic markets. Additionally, volatile bond markets and soaring inflation will continue to weigh on investors' sentiments," he added. BSE bankex, finance, metal, realty and capital goods indices fell up to 1.03 per cent, while IT, teck, telecom and FMCG ended on a positive note.

Broader BSE midcap and smallcap indices rose up to 0.40 per cent. World stocks were in the positive terrain ahead of the meeting of the US Federal Reserve and other central banks, with investors wagering on a continuation of dovish policy measures. In rest of Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended in the green.

Stock exchanges in Europe were also trading with gains in mid-session deals. Meanwhile, the global oil benchmark Brent crude was trading 1.61 per cent lower at $67.77 per barrel. The rupee pared its initial gains and depreciated 9 paise to settle at 72.55 against the US dollar. Foreign institutional investors were net sellers in the capital markets as they offloaded shares worth Rs 1,101.35 crore on Monday, according to exchange data.