Benchmarks Sensex and Nifty snapped their six-day winning streak to close down more than half a percent after posting profits in oil and gas, auto and telecom stocks on Monday .
The 30-stock BSE Sensex fell 306.01 points or 0.55% to settle at 55,766.22, led by index heavyweight Reliance Industries.
During the day, the barometer fell 535.15 points or 0.95% to 55,537.08.
The broader NSE Nifty plunged 88.45 points or 0.53% to 16,631 as 31 of its constituents closed in the red.
“The bulls have finally lost steam after surging for the past six straight sessions as investors saw gains in autos, oil & gas and telecom stocks, although gains in metals and some capital goods stocks capped losses. Investors traded cautiously ahead of the Fed. The reserve will meet on Wednesday,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. .
Among Sensex constituents, Mahindra & Mahindra fell the most by 3.80%.
Reliance Industries fell 3.31% after the company’s June quarter earnings failed to encourage investors.
Other laggards in the pack were Maruti Suzuki India, Kotak Mahindra Bank, UltraTech Cement, Tech Mahindra and Nestlé.
Tata Steel, IndusInd Bank, Asian Paints, HCL Technologies, Wipro and NTPC were among the winners.
“RIL’s results, while impressive on the telecom and retail front, are slightly below expectations on the refining front,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Infosys, which reported a 3.2% increase in its June quarter profit and improved its revenue forecast for FY23, fell 0.23%.
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“Fears of a global economic slowdown as well as the reaction to a string of major quarterly earnings dictated the domestic market trend. Recession fears cast a shadow over global markets as business activity in the U.S. and in Europe contracted unexpectedly due to the slowdown in the manufacturing and services sectors,” said Vinod Nair, head of research at Geojit Financial Services.
In the broader market, the BSE small cap gauge fell 0.13% and the mid cap index finished up a slight 0.03%.
Among the BSE sector indices, autos fell by 1.69%, energy by 1.32%, telecommunications by 0.96%, oil and gas by 0.86%, healthcare by 0.71% and real estate by 0.42%.
Basic materials, industrials and metals were among the winners.
Ajit Mishra, Vice President – Research, Religare Broking, said indications are for consolidation and volatility is expected to remain high, given the ongoing earnings season and the results of the upcoming Fed meeting. American.
In Asia, markets in Tokyo, Shanghai and Hong Kong ended lower, while Seoul settled into the green.
European markets were trading in the green in mid-term trades. US markets ended lower on Friday.
Meanwhile, the international crude oil benchmark Brent jumped 1.24% to $104.52 a barrel.
Foreign institutional investors unloaded shares worth Rs 675.45 crore on Friday, according to exchange data.
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