Major indices Sensex and Nifty fell for the ninth consecutive trade session on Tuesday after heavy selling in the final hour of the trade on account of profit booking.
Initially investor sentiments were upbeat owing to the transfer of interim dividend from the RBI to the government and a possibility of easing trade tension as a new round of trade talks between the US and China are set to begin.
"Though the amount is not huge but it is a breather for the government keeping in mind the fiscal deficit. Markets rejoiced as the RBI dividend will make way in the markets through welfare spending which will in turn boost rural consumption," Saurabh Jain, AVP, SMC Global, told IANS.
Also, a sharp decline in IT stocks, closing over 2 per cent lower, dragged the markets which analysts said was the result of profit booking.
"Market opened on a positive note as transfer of interim dividend from RBI helped the indices to rebound after days of correction. However, the reversal was short-lived due to mixed global market and investor strategy to book profit on every rally," said Vinod Nair, Head of Research, Geojit Financial Services.
"Albeit, rate sensitive sectors stand positive due to the stimulus measures from RBI and reforms by the government."
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