Domestic Stock Markets Extended Losses for Second Straight Day

The Nifty IT index finished 2.8 per cent lower. Analysts say continuous strength in the rupee fuelled the fall in IT stocks.

Domestic stock markets, extended losses for a second straight day amid weakness in Asian peers. Losses in IT and energy stocks dragged the markets, however advances in pharmaceuticals limited the downside.

BSE benchmark index Sensex ended 274 points, or 0.8 per cent, lower at 35,199, while the NSE settled at 10,600, down 56 points from the previous close. Top laggards on the 50-scrip index Nifty included Infosys, TCS, Tech Mahindra and HCL Tech, closing between 2.4 per cent and 3.5 per cent lower.

The Nifty IT index comprising technology stocks finished 2.8 per cent lower. Analysts say continuous strength in the rupee fuelled the fall in IT stocks. The rupee has risen for six sessions in a row. Bond and money markets remained closed today for a public holiday.

“Markets are down on negative global sentiment. But they have moved up quite a bit from their recent lows, so at these levels there is some nervousness as the corporate earnings season is over,” cited Siddhartha Khemka, head of retail research at Motilal Oswal Securities, as saying.

“Market is now looking forward for OPEC’s (Organization of the Petroleum Exporting Countries) actions, comments from the US and China on trade war.”

Crude oil prices recovered some of the over 6 per cent plunge witnessed in the previous session, lifted by a report of an unexpected decline in US commercial crude inventories as well as record Indian crude imports.

The losses in the domestic markets came amid fund outflows triggered by institutional investors. net sale of shares stood at Rs. 753.17 crore by foreign institutional investors (FIIs), and Rs. 44.06 crore by domestic institutional investors (DIIs) on Tuesday, according to provisional data from the NSE.

Equities in other Asian markets moved lower amid heightened concerns about global economic growth as crude oil prices struggled to hold ground. MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 1.41 per cent.

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