Mumbai–Major indices Sensex and Nifty fell for the ninth consecutive trade session on Tuesday after heavy selling in the final hour of the trade on account of profit booking.
Initially investor sentiments were upbeat owing to the transfer of interim dividend from the RBI to the government and a possibility of easing trade tension as a new round of trade talks between the US and China are set to begin.
However, other factors like high crude oil prices in the range of $66-67 per barrel, weak rupee and continued tensions between India and Pakistan capped the gains.
“Though the amount is not huge but it is a breather for the government keeping in mind the fiscal deficit. Markets rejoiced as the RBI dividend will make way in the markets through welfare spending which will in turn boost rural consumption,” Saurabh Jain, AVP, SMC Global, told IANS.
Also, a sharp decline in IT stocks, closing over 2 per cent lower, dragged the markets which analysts said was the result of profit booking.
“Market opened on a positive note as transfer of interim dividend from RBI helped the indices to rebound after days of correction. However, the reversal was short-lived due to mixed global market and investor strategy to book profit on every rally,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Albeit, rate sensitive sectors stand positive due to the stimulus measures from RBI and reforms by the government.”
The BSE Sensex closed 145.83 points or 0.41 per cent lower at 35,352.61 from its previous close of 35,498.44 while the Nifty settled at 36.60 points lower at 10,604.35.
Top Sensex gainers was led by Vedanta which jumped over 3 per cent followed by ICICI Bank, ONGC, Mahindra and Mahindra and Larsen and Toubro.
TCS declined by 3.39 per cent, the most on Sensex, followed by NTPC, IndusInd Bank, IndusInd Bank, Infosys and HeroMoto Corp. (IANS)