Market rebound fizzles out, equities end lower for third day; Tata Steel tanks 6.95 pc

PTI

Mumbai, May 10

Equity indices failed to hold on to their gains in see-saw trade on Tuesday, ending in the red for the third straight session despite a tentative recovery in global equities.

The rupee too bounced back from historic lows, but the overall sentiment remained risk-averse amid concerns over economic recovery in a high interest rate scenario.

The 30-share BSE Sensex had a choppy start but gained momentum in mid-session trade. However, it succumbed to selling pressure towards the fag end to close 105.82 points or 0.19 per cent lower at 54,364.85.

On similar lines, the broader NSE Nifty declined 61.80 points or 0.38 per cent to finish at 16,240.05.

Tata Steel was the biggest loser in the Sensex pack, sinking 6.95 per cent, followed by Sun Pharma, NTPC, Titan, Bajaj Finance, Reliance Industries, Tech Mahindra and ITC.

In contrast, HUL, Asian Paints, IndusInd Bank, UltraTech Cement, Maruti, Kotak Mahindra Bank and HDFC twins jumped up to 3.24 per cent.

Market breadth was negative, with 18 of the 30 Sensex stocks closing in the red.

“The resistance of Indian market has started to move in tandem with the world market. The support from DII and retail investors is reducing after the heavy selloff unsteadying their optimism. A fall in financial liquidity is expected to slow down the economy and the pricing of equities.

“Oil prices are declining further on worries of Chinese lockdown, rising dollar and risk of recession,” said Vinod Nair, Head of Research at Geojit Financial Services.

Deepak Jasani, Head of Retail Research, HDFC Securities, said, “Nifty could not hold on to the intraday bounce after a weak opening and closed in the negative for the third consecutive session. European stocks rose as dip buyers emerged from the ruins of Monday’s rout, even though sentiment remained fragile over concerns about inflation and economic growth.”         

In the broader market, the BSE smallcap gauge tumbled 2.11 per cent and midcap index dropped 1.98 per cent.

Among BSE sectoral indices, metal plunged 5.62 per cent, followed by utilities (4.57 per cent), power (4.33 per cent), realty (2.96 per cent), basic materials (2.67 per cent) and energy (2.51 per cent). Bank, finance and FMCG ended modestly higher.

Elsewhere in Asia, markets in Tokyo, Hong Kong and Seoul ended lower, while Shanghai settled in the green.

Equity markets in Europe were quoting higher in the afternoon session.

Stock exchanges in the US had fallen sharply on Monday.

Meanwhile, international oil benchmark Brent crude dipped 1.82 per cent to USD 104 per barrel.

Snapping its two-day losing streak, the rupee appreciated 12 paise to end at 77.32 (provisional) against the US dollar on Tuesday, supported by a rebound in regional currencies and fall in crude oil prices.

Foreign institutional investors remained in selling mode, offloading shares worth a net Rs 3,361.80 crore on Monday, according to stock exchange data. PTI