Sensex, Nifty end lower amid volatility; PSU banks, IT stocks top drags

Domestic benchmark equity indices settled with minor losses on Tuesday as market participants booked profits at higher levels. After scaling a new high of of 58,553 during the day, Sensex ended at 58,279.48, down 17.43  points or 0.03%. Likewise, Nifty declined 15.70 points or 0.09% to end at 17,362.10. The 50-share index scaled an intra-day high of 17,436.50.

“The domestic market traded with high volatility as investors locked in gains from the recent rally & global factors. However, the broad market maintained its buoyancy in segments, which are bound to benefit from unlocking. European shares traded with cuts ahead of the European Central Bank’s policy meeting on Thursday, where talks regarding the tapering of asset purchase program are likely to take place in the backdrop of rising eurozone inflation,” said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

Top gainers & losers on the Sensex.

Sectoral strand

Most sectoral indices on the NSE closed lower. Nifty Realty, down 2.33%, was the top sectoral laggard followed by Nifty IT, Nifty Metal, Nifty Pharma, Nifty Bank and Nifty Auto. On the upside, the Nifty FMCG index rose 0.30%.

The volatility index cooled off a bit to sub 15 levels at 14.89 down by 1.39%

Broader markets

The broader markets underperformed the benchmark indices. The BSE Midcap ended lower at 24,368 declining 57 points or 0.23%. While the BSE Smallcap index slipped 116 points or 0.57% to 27,350.

Market breadth turned negative as 1,844 shares declined compared to 1,332 advanced whereas 142 remained unchanged.

Global markets

European stocks fell across the board while Asian stocks were mixed on Tuesday.

China’s import and export growth accelerated in August despite disruptions due to the spread of the coronavirus’s delta variant. Exports rose 25.6% over a year earlier to $294.3 billion, up from July’s 18.9% growth, customs data showed Tuesday. Imports rose 33.1% to $236 billion, up from the previous month’s 28.7%.

Meanwhile. the Reserve Bank of Australia today announced its decision to hold steady on the cash rate target.