range bound movement of the market is likely to be broken with an upward move soon, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex sank 85 points down on Monday. Dragged by heavy selling pressure in IT and banking stocks. This is the second consecutive session of drop. The index had lost 460.19 points or 0.80 per cent on Friday, the last trading day.
The 30 stock S&P BSE Sensex closed 84.88 points or 0.15 percent down at 56,975.99 points against its previous session’s close at 57,060.87 points.
Tracking the weakness in the global equities, the Sensex started the day with deep cuts at 56,429.45 points and slumped to a low of 56,412.62 points in the morning trade. However, Sensex erased part of the losses later in the day. It rose to a high of 57,054.23 points in the intra-day.
The broader Nifty 50 of the National Stock Exchange closed 33.45 points or 0.2 per cent down at 17,069.10 points against its previous session’s close at 17,102.55 points.
Earlier, the Nifty opened deep in the red at 16,924.45 points and slumped to a low of 16,917.25 points in the morning trade. The Nifty rose to a high of 17,092.25 points in the intra-day.
IT firm Wipro extended losses on disappointing Q4 results. Wipro slumped 2.74 per cent to Rs 495.05, the lowest level in nearly 52 weeks. The scrip has lost around 18 per cent in the past one month. Selling pressure in Wipro stock intensified on Monday after the company last week reported a paltry 3.85 per cent year-on-year increase in its net profit.
Infosys slumped 1.70 per cent to Rs 1541.25. Tech Mahindra slipped 2.01 per cent to Rs 1231.30. HCL Technologies dipped 1.02 per cent to Rs 1067.95.
Banking stocks also witnessed selling pressure. State Bank of India slumped 1.16 per cent to Rs 490.75. Kotak Bank slipped 1.03 per cent to Rs 1770.45. However, IndusInd Bank surged 4.17 per cent to Rs 1019.
The index heavyweight Reliance Industries closed 0.37 per cent down at Rs 2780.55.
Eleven of the 30 scrips that are part of the benchmark Sensex closed in the positive. NTPC, Power Grid Corporation, Tata Steel, HDFC, ITC and HDFC Bank were among the major Sensex gainers.