Business

Sensex, Nifty Decline For Second Straight Day Dragged By Banks

Sensex, Nifty Decline For Second Straight Day Dragged By Banks

The S&P BSE Sensex and NSE Nifty 50 indexes fell for second session in a row on Wednesday dragged down by selling pressure in banking, financial services and information technology shares. The benchmarks had opened lower in trade today mirroring losses in other global markets where in the Sensex fell as much as 430 points from its previous close of 38,365.35, and the broader Nifty 50 benchmark briefly dropped below its important psychological level of 11,200. However, buying in Reliance Industries helped the equity benchmarks to recoup some losses towards the end of the trading session.

The Nifty 50 index ended 0.35 per cent or 39 points lower at 11,278 and the Sensex index dropped 171 points or 0.45 per cent to close at 38,194.

Equities elsewhere in Asia fell, and oil prices hit lows not seen since June, following a rout in technology shares sank Wall Street for a third consecutive day and a major drug maker delayed testing of a coronavirus vaccine.

Seven of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty PSU Bank index's 3 per cent fall. Nifty Bank, Financial Services, FMCG, IT and Realty indexes also fell between 0.8-2 per cent.

On the other hand, media, metal and pharma shares witnessing buying interest.

Mid- and small-cap shares also faced selling pressure as Nifty Midcap 100 index fell 0.52 per cent and Nifty Smallcap 100 index dropped 1.5 per cent.

State Bank of India was top Nifty loser, the stock fell 4 per cent to close at Rs 195.70. GAIL, Bajaj Finserv, Axis Bank, Indian Oil, ONGC, ITC, ICICI Bank, Bajaj Finance, BPCL, Coal India, HDFC Bank, Bharti Infratel and Infosys also fell between 1-3 per cent.

On the flipside, Reliance Indusries closed 2.7 per cent higher at Rs 2,164 after the conglomerate said US-based Silver Lake would invest Rs 7,500 crore in its subsidiary, Reliance Retail Ventures.

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Tata Steel, Zee Entertainment, Cipla, Grasim Industries, JSW Steel, Dr Reddy's Labs, Hindalco, IndusInd Bank and UPL were also among the gainers.

The overall market breadth was bearish as 1,805 ended lower while 878 closed higher on the BSE.