Markets End Flat In Red On Profit Booking

Triggered by the recent stimulus policies by the Chinese central bank, funds are shifting to cheaper Chinese stocks from expensive markets like India. This, along with the possible increase in interest rates by the BoJ due to recent political changes, may impact the domestic market in the near term, said Vinod Nair, head (research), Geojit Financial Services

Mumbai: Benchmark indices Sensex and Nifty edged lower on Tuesday, extending the losing run to the third day amid profit-taking in oil & gas and select FMCG shares.

The BSE Sensex dipped 33.49 points or 0.04 per cent to settle at 84,266.29. During the day, it hit a high of 84,648.40 and a low of 84,098.94. The NSE Nifty closed marginally lower by 13.95 points or 0.05 per cent to 25,796.90. Stock markets will remain closed on Wednesday for Mahatma Gandhi Jayanti.

“Triggered by the recent stimulus policies by the Chinese central bank, funds are shifting to cheaper Chinese stocks from expensive markets like India. This, along with the possible increase in interest rates by the BoJ due to recent political changes, may impact the domestic market in the near term,” said Vinod Nair, head (research), Geojit Financial Services.

Muted trends in global markets and heavy foreign fund outflows weighed on investor sentiment, analysts said. Sensex has shed nearly 1,570 points or nearly 2 per cent and Nifty declined 419 points or 1.6 per cent since Friday after China announced stimulus measures to prop-up its economy.

Among 30 Sensex companies, IndusInd Bank fell the most by 2.68 per cent. Asian Paints dropped 1.54 per cent and Hindustan Unilever by 1.27 per cent. Tata Motors fell nearly 1 per cent on disappointing September sales numbers. Tata Steel, Titan, Reliance Industries and NTPC were also among the major laggards.

IT shares bucked the trend and helped indices trim losses. Tech Mahindra rose the most by 2.93 per cent among Sensex shares. Mahindra & Mahindra rose by 2.22 per cent on strong sales numbers in September.