Equity benchmarks slip for third day, Sensex finishes below 61,000 mark

Surrender early gains; banks, automotive stocks among biggest losers

Equity benchmarks surrendered early gains to finish in the red for the third session on the trot on Thursday as hawkish comments from Reserve Bank of India (RBI) and the Covid-19 surge in China kept buying sentiment in check despite largely positive global market trends.
 

After a gap-up opening, the 30-share BSE Sensex buckled under selling pressure as the session progressed and finally closed 241.02 points or 0.39 per cent lower at 60,826.22. During the day, it tumbled 430 points or 0.70 per cent to 60,637.24.
 

On similar lines, the broader NSE Nifty dropped 71.75 points or 0.39 per cent to settle at 18,127.35.
 

Mahindra & Mahindra was the top loser on the Sensex chart, declining 2.61 per cent, followed by Bajaj Finserv, IndusInd Bank, Tata Motors, L&T, Tata Steel and Axis Bank.
 

UltraTech Cement, Infosys, Asian Paints, Kotak Mahindra Bank, Sun Pharma and Bharti Airtel were the winners, climbing up to 0.84 per cent.

 

The market breadth was negative, with 24 of the 30 Sensex stocks posting losses.
 

“Positive sentiments from the global markets failed to bolster optimism in the domestic indices. The losses were extended in domestic equities owing to the hawkish comments from the RBI’s MPC minutes, which suggested that a premature pause in rate tightening would be a ‘costly policy error at this juncture’,” said Vinod Nair, Head of Research at Geojit Financial Services.
 

A premature pause in rate hikes at this juncture could be a costly policy error as the battle against inflation is not over, RBI Governor Shaktikanta Das opined while voting for a 35 basis points raise in the key lending rate earlier in the month, as per minutes of the MPC meeting released post market hours on Wednesday.
 

On the coronavirus front, Prime Minister Narendra Modi held a high-level meeting on Thursday to review the Covid-19 situation in the country in the backdrop of a surge in cases in China and some other nations.
 

“Indian benchmark indices made a positive start today amid strong global market cues. Indices gained momentum following overnight gains on Wall Street. But the euphoria soon faded away and investors remained cautious amid rising COVID cased in China, Japan, Korea and Brazil,” said Mohit Nigam, fund manager & head - PMS, Hem Securities.
 

In the broader market, the BSE smallcap gauge fell 1.83 per cent and the midcap index declined 0.77 per cent.
 

Among sectoral indices, industrials tanked 1.78 per cent, utilities fell 1.60 per cent, capital goods declined 1.57 per cent, power (1.49 per cent), realty (1.33 per cent), consumer discretionary (1.10 per cent), auto (1.05 per cent) and commodities (0.90 per cent).
 

Only the teck index managed to end in the green.