Valuation concerns erode early gains

Domestic benchmark indices opened higher on Tuesday, aided by favourable global clues. However, after some initial jitters, the market saw massive profit-booking, said Hrishikesh Yedve, AVP (technical and derivatives research), Mehta Investment Interrmediates Ltd

Mumbai: Equity benchmark indices Sensex and Nifty declined on Tuesday dragged by HDFC Bank, Reliance Industries and ICICI Bank amid concerns over rich valuation of equities. Paring all its early gains, the 30-share BSE Sensex went lower by 383.69 points or 0.52 per cent to settle at 73,511.85. During the day, it tanked 636.28 points or 0.86 per cent to 73,259.26. The NSE Nifty declined 140.20 points or 0.62 per cent to 22,302.50.

“Domestic benchmark indices opened higher on Tuesday, aided by favourable global clues. However, after some initial jitters, the market saw massive profit-booking,” said Hrishikesh Yedve, AVP (technical and derivatives research), Mehta Investment Interrmediates Ltd.

In the broader market, the BSE midcap gauge declined 1.90 per cent and smallcap index dipped 1.65 per cent. Among the indices, realty dropped 3.41 per cent, utilities (2.85 per cent), commodities (2.18 per cent), consumer discretionary (1.73 per cent) and telecommunication (1.43 per cent). IT and teck were the gainers.

From the Sensex basket, Power Grid, IndusInd Bank, Tata Motors, JSW Steel, NTPC, HCL Technologies, Tata Steel, ICICI Bank, Mahindra & Mahindra, Axis Bank, HDFC Bank and Reliance Industries were among the major laggards. Among the gainers, Hindustan Unilever climbed over 5 per cent. Tech Mahindra, Nestle, ITC, Wipro, Tata Consultancy Services and Kotak Mahindra Bank were the other major gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,668.84 crore on Tuesday, according to exchange data. The BSE benchmark edged up 17.39 points or 0.02 per cent to settle at 73,895.54 on Monday. The NSE Nifty declined 33.15 points or 0.15 per cent to 22,442.70.

Indegene IPO subscribed 7.34x on Day-2

The Initial Public Offer (IPO) of healthcare tech firm Indegene received 7.34 times subscription on Day-2 of bidding on Tuesday. The Rs1,841.75 crore IPO received bids for 21,20,23,944 shares against 2,88,66,677 shares on offer, as per NSE data. The category for non-institutional investors was subscribed 18.02 times while the Qualified Institutional Buyers (QIBs) part fetched 5.59 times subscription. The portion for Retail Individual Investors (RIIs) received 3.82 times subscription. The initial public offer has a fresh issue of up to Rs760 crore and an offer for sale of up to 2,39,32,732 equity shares.