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Financial stocks drags Sensex, Nifty to red zone

Unlike the larger markets, the MidCap and SmallCap on the broader markets ended with gains at 0.99 per cent and 0.73 per cent respectively.

Financial stocks drags Sensex, Nifty to red zone

(Photo: iStock)

Domestic equity markets ended in negative territory on Monday, tracking losses in index majors HDFC Bank, ICICI Bank and Reliance Industries amid a weak trend in global markets. The S&P BSE Sensex ended 86.95 points or 0.17 per cent lower at 49,771.29, while the broader NSE Nifty dipped 7.60 points or 0.05 per cent to 14,736.40.

The laggards on the Sensex pack were led by IndusInd Bank, shedding around 4 per cent, followed by PowerGrid, ICICI Bank, HDFC Bank, Axis Bank and Bajaj Finance. On the other hand, Tech Mahindra, TCS, Sun Pharma, Infosys and HCL Tech were among the gainers.

Global markets reeled and the Turkish lira plunged to near record lows after President Tayyip Erdogan unexpectedly replaced the country’s central bank governor, shocking investors and stoking fears of capital controls.

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“Indian markets opened weak with marginal decline following mixed to negative cues from its Asian market peers as investors watched the weakening Turkish lira and fears of rise in cases due to COVID virus which increased volatility in markets.

“During the afternoon session, the markets extended their losses and sentiments were dented due to major dampener in the form of fast-rising COVID-19 cases… Restricted economic activity in these regions may impact the optimistic growth projections for FY22,” said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.

Further, weak global cues and higher US bond yields kept markets nervous.

However, strong buying was seen in IT, FMCG and pharma space, while financials and automobiles witnessed selling pressure.

“Notably, investors lapped-up quality midcap and small cap stocks after recent corrections in these spaces,” Binod Modi, Head – Strategy at Reliance Securities.

Unlike the larger markets, the MidCap and SmallCap on the broader markets ended with gains at 0.99 per cent and 0.73 per cent respectively.

Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo were in the red, while Shanghai ended on a positive note.

Stock exchanges in Europe were also trading on a weak note in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 0.20 per cent lower at USD 64.40 per barrel.

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