Markets extend losses for 4th day on weak Asian cues

Mumbai: Equity benchmarks stayed on the backfoot for the fourth consecutive session on Thursday as IT and finance counters bore the brunt of hectic selling amid weak Asian cues.

A continuously declining rupee and grim macroeconomic data also sapped investor confidence, traders said. The 30-share BSE Sensex ended 164.11 points or 0.31 per cent lower at 52,318.60. Similarly, the broader NSE Nifty shed 41.50 points or 0.26 per cent to close at 15,680. "Selling was triggered in the domestic market as investors remained cautious about the increasing Covid cases especially in Asia. Despite the easing of restrictions, the manufacturing PMI data for June contracted to 48.1 from 50.8 in the previous month. However, the diminishing rate of domestic infection and progress in vaccination provided some comfort to the market. Positive auto sales numbers for June helped the sector to trade in positive territory," said Vinod Nair, head (research) at Geojit Financial Services. Binod Modi, head (strategy) at Reliance Securities, said: "Domestic equities continued to trade range-bound as rebound in auto, pharma and FMCG was overshadowed by profit-booking in financials and IT space." Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 1,646.66 crore, as per exchange data.

Bajaj Finserv was the top laggard in the Sensex pack, tumbling 2.20 per cent, followed by Infosys, UltraTech Cement, Tech Mahindra, IndusInd Bank, Bajaj Finance and HDFC Bank. On the other hand, Dr Reddy's, Bajaj Auto, Sun Pharma, Asian Paints, Maruti and NTPC were among the gainers, climbing up to 2.56 per cent. India's manufacturing sector activities contracted for the first time in 11 months in June as rise in coronavirus cases and strict containment measures adversely impacted demand as well as resulted in job losses, a monthly survey showed.