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Sensex, Nifty end lowest since early June; financials, auto and metal drag

IndusInd Bank, Axis Bank, Maruti, Bajaj Finserv, PowerGrid and SBI were among the other major laggards.

SNS | New Delhi |

Indian benchmark indices Sensex and Nifty ended in negative territory, witnessing their biggest single-day fall since early-June, tracking weak global cues and selling in financials, auto and metal stocks.

The 30-share BSE Sensex ended 660.63 points, or 1.80 per cent, lower at 36,033.06, while the NSE managed to hold its 10,600 mark, closing 195.35 points, or 1.81 per cent lower at 10,607.35.

On the BSE chart, both HDFC and HDFC Bank fell over 2 per cent after the latter said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.

IndusInd Bank, Axis Bank, Maruti, Bajaj Finserv, PowerGrid and SBI were among the other major laggards.

Whereas, Titan, Bharti Airtel and Bajaj Auto closed with gains.

On the NSE side, of all the 50 Nifty constituents only 3 managed to end the trading day with gains.

Metals and Auto stocks were the other sectoral laggards, ending lower by 2.5 per cent each. Similarly, I.T. and realty index also plunged over 1 per cent respectively.

In the broader market, both Midcap index and smallcap index slumped 1.1 per cent and 1.5 per cent respectively.

“Key indices corrected close to 2 per cent on weakness in financial and metal stocks. We witnessed profit booking in key auto stocks as their volume numbers are already known to the street for the first quarter,” said S Ranganathan, Head of Research at LKP Securities.

According to traders, besides stock-specific actions, negative cues from global markets amid escalating US-China tension and rising COVID-19 cases dampened investor sentiment here.

Asserting that the “Chinese predatory world view” had no place in the 21st century, the US on Monday categorically rejected the territorial claims made by Beijing in South China Sea, stating that it has no legal grounds to unilaterally impose its will on the region.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul closed with significant losses.

Stock exchanges in Europe also began on a negative note.

Meanwhile, international oil benchmark Brent crude futures fell 0.73 per cent to $42.41 per barrel.