Sensex, Nifty fall for 3rd day; bank stocks, rising yields weigh

Sensex, Nifty fall for 3rd day; bank stocks, rising yields weigh

Benchmark equity indices Nifty50 and Sensex extended their losses for a third consecutive session on Tuesday, bogged down by the ripple effect of Punjab National Bank’s Rs 11,400 crore loan fraud and sudden spike in India’s 10-year bond yields.

However, shares of Punjab National BankBSE 0.13 % broke the losing streak of four sessions and closed 0.13 per cent up at Rs 116.55 on BSE.

Although markets registered a positive opening on Tuesday, it erased the entire gains of the day during the final hour of the trade, mainly due to profit booking in bank and financial stocks. Weak Asian cues too dampened the mood.

Moreover, rising bond yields too scared investors away from the equity market. The 10-year bond yield hit 7.68 per cent intraday, its highest level in two years, pushing stock market lower in late trade.

The Nifty50 index settled 18 points, or 0.17 per cent, down at 10,360, while the 30-share Sensex closed 71 points, or 0.21 per cent, down at 33,704 on Tuesday.

Among the 50 stocks in the Nifty50 index, 27 settled in the green, while 22 in the red. One stock remained unchanged.

Broader BSE Midcap and smallcap indices too closed lower by 0.06 per cent and 0.15 per cent, respectively.

The bandwagon of gainers included Coal IndiaBSE 1.84 %, ONGC, Bharti Airtel and State Bank of India. On the contrary, the pack of losers featured Mahindra & Mahindra, Axis BankBSE -1.44 %, Kotak Mahindra Bank, YES BankBSE -1.06 % and HDFC Bank.

Meanwhile, IT and metal stocks caught investors’ attention and most of them managed to end the day in the green.

The Nifty Metal index closed the day with a gain of over 1 per cent, with VedantaBSE 2.53 %, NMDC and Coal India climbing 2.70 per cent, 1.99 per cent and 1.83 per cent, respectively.

IT pack gained on weak rupee and most of the tech stocks including MindtreeBSE 0.78 %, Tata Consultancy ServicesBSE 0.70 %, Wipro and InfosysBSE 0.42 % settled among the gainers. Nasscom’s positive outlook on the sector also attracted buying interest.

Globally, European shares appeared cold as bond market regained traction. Asian peers Hang Seng and Nikkei ended 1 per cent lower.

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