Sensex, Nifty fall for second day on profit taking in RIL, HDFC twins

Key stock indices Sensex and Nifty declined by more than half a per cent for a second straight day on Wednesday due to profit booking in banking, oil & gas and pharma stocks amid lingering worries over inflation.

The 30-share index ended 314.04 points or 0.52 per cent lower at 60,008.33 as 20 of its components ended with losses. The index moved between a high of 60,426.61 and a low of 59,944.77 during the day.

The broader Nifty of the National Stock Exchange declined by 100.55 points or 0.56 per cent to close at 17,898.65. Axis Bank was the top loser in the Sensex pack, shedding around 2 per cent.

Reliance Industries declined by 1.91 per cent, Kotak Bank by 1.51 per cent, Bharti Airtel by 1.39 per cent and Titan by 1.2 per cent. Among others, HDFC Bank, HDFC, Dr Reddy's, Sun Pharma, TCS, and HCL Tech also declined.

On the other hand, Maruti remained the top gainer among Sensex scrips for a second day, rising by 2.77 per cent. Asian Paints and PowerGrid rose more than 2 per cent. NTPC, ITC, IndusInd and Tech Mahindra also advanced.

"Robust US retail sales data failed to inspire global markets as domestic indices were seen trading with a negative bias to close deep in the red. UK's rising annual inflation rate reported at 4.2% in October from 3.1% a month ago, has begun to sour investor moods, adding to the existing inflationary worries," Vinod Nair, Head of Research at Geojit Financial Services, said.

The auto sector was in focus as reports suggested relief in chip & semi-conductor shortages, Nair added. Sectorally, BSE realty, energy, oil and gas, telecom and bankex fell up to 1.79 per cent while power, auto, utilities and healthcare indices ended with gains.

Broader midcap index closed 0.21 per cent lower, while smallcap was marginally up. "Markets traded volatile in a range in continuation to a prevailing consolidation phase. Profit taking in the final hours pushed the index in red," Ajit Mishra, VP - Research, Religare Broking said.

"Feeble global cues are weighing on sentiment and there's nothing much to cheer on the domestic front as well. Indications are in the favour of further slide but the pace would be gradual," he added. 

Elsewhere in Asia, bourses in Hong Kong, Tokyo and Seoul ended with losses, while Shanghai was positive. Stock exchanges in Europe were largely trading with gains in mid-session deals. Meanwhile, international oil benchmark Brent crude fell 0.90 per cent to USD 81.69 per barrel.