Benchmark Indices Slide For 3rd Day, Tumble 1%

Mumbai: Falling for the third day in a row, benchmark stock indices Sensex and Nifty tumbled 1 per cent on Tuesday dragged down by profit taking in blue-chips such as HDFC Bank, Reliance Industries and ICICI Bank.

Retreating from early highs, the 30-share BSE Sensex tanked 872.98 points or 1.06 per cent to settle at 81,186.44 as 27 of its constituents closed lower and three with gains. During the day, it dropped 905.72 points or 1.10 per cent to 81,153.70 as profit taking emerged in auto, financials and defence stocks. The broader NSE Nifty tumbled 261.55 points or 1.05 per cent to 24,683.90.

Analysts said investors opted for profit-booking as they awaited more clarity on the India-US trade agreement. From Sensex firms, Eternal dropped the most by 4.10 per cent. Maruti, Mahindra & Mahindra, UltraTech Cement, Power Grid, Nestle, Bajaj Finance, Hindustan Unilever and Asian Paints were also among the laggards. HDFC Bank dropped by 1.26 per cent and index major Reliance Industries by 1.13 per cent. Tata Steel, Infosys and ITC were the gainers.

“With the lack of major positive triggers and prevailing uncertainty over US fiscal stability, investors opted for profit-booking and adopted a cautious stance. Selling pressure was widespread as participants awaited more clarity on the India-US trade agreement,” Vinod Nair, Head of Research, Geojit Investments Limited, said. “Given the current premium valuations and delays in the trade deal, we foresee a phase of short-term consolidation, which may lead FIIs to scale back their positions in the domestic market,” he added.

The BSE midcap gauge tanked 1.65 per cent and smallcap index dropped 0.96 per cent. All sectoral indices ended lower. Auto declined 2.13 per cent, consumer discretionary (1.81 per cent), utilities (1.64 per cent), services (1.53 per cent), industrials (1.36 per cent) and telecommunication (1.35 per cent). As many as 2,531 stocks declined while 1,438 advanced and 135 remained unchanged on the BSE.