Sensex ends lower, Nifty below 8,900 as private bank stocks dip

The benchmark indices extended losses to settle the day lower as investors remained on the sidelines ahead of the US president Donald Trump's speech to a joint session of Congress on Tuesday night.

The Nifty50 index ended below its crucial 8,900 mark as private bank stocks slid. It quoted 8,896, down 43 points at close. The S&P BSE Sensex settled at 28,812, down 80 points. 

Broader markets outperformed the frontline indices. The BSE Smallcap indices ended 0.2% higher, while the BSE Midcap was little changed. 

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,515 shares declined and 1,265 shares fell. A total of 252 shares were unchanged.

"We might see further slide in index ahead. However, it's a chance for those who had missed the bus earlier. We're bullish on markets and advise to use this phase to add quality stocks. With almost all the sectors participating in the move, we suggest focusing more on stock selection," said Jayant Manglik, President, Retail Distribution, Religare Securities.

Sectors and stocks

Nifty private bank index (down 1.5%) was the leading sectoral loser. Axis Bank was down nearly 4% to Rs 509, while Citi Union Bank, YES Bank, and ICICI Bank shed 1.8% each. Kotak Bank and IndusInd Bank slipped 1.5% each. 

Among individual Nifty stocks, Idea Cellular (down 4.7%) and Axis Bank (down 3.7%) were the top losers. 

Reliance Industries (RIL) rallied 5% to Rs 1,239, hitting an over 8-year high. A sharp rally in stock has seen the market capitalisation of RIL crossing Rs 4 lakh crore on continued hopes about its telecom unit Reliance Jio.

Lakshmi Vilas Bank rose over 2% to Rs 160 on the BSE after a large bulk deal of 37.85 lakh shares was executed on the scrip at Rs 159 per share in opening trade on the BSE today, 27 February 2017.

Gayatri Projects rose over 4% to Rs 143 after a joint venture between the company's arm and two other firms completed the construction of a 660-megawatts thermal plant unit.

GMR Infrastructure rose as much as 7.4% to its highest since January 6, 2016 after the company said it had completed strategic debt restructuring of a unit, leaving its consortium of lenders with 52.4% stake.

Global markets

European markets were trading flat as investors eyed troubles in the London Stock Exchange-Deutsche Boerse merger and a potential new referendum in Scotland. The pan-European Stoxx 600 and FTSE was 0.2% higher, while CAC 40 was little changed. 

Asian markets ended lower as investors looked ahead to Trump's speech to Congress for details of promised tax cuts and infrastructure spending. Japan's nikkei shed 0.9%, while China's Shanghai Composite and Hong Kong's Hang Seng index slipped 0.7% and 0.2%. Australia was off 0.3%.