Stock markets snap two-day winning run on weak global trends

Mumbai, March 11

Stock market benchmark Sensex declined by 616.75 points on Monday, snapping its two-day gaining streak due to selling in metal and banking shares amid weak trends in the global markets.

Taking a breather after a record-breaking rally, the 30-share BSE Sensex declined by 616.75 points or 0.83 per cent to settle at 73,502.64 due to profit taking. During the day, the barometer tanked 685.48 points to 73,433.91.

The broader Nifty slumped by 160.90 points or 0.72 per cent to close at 22,332.65.

Among Sensex firms, Power Grid and Tata Steel fell more than 2 per cent. HDFC Bank, State Bank of India, IndusInd Bank, Hindustan Unilever and NTPC were among the major laggards.

Nestle, Bajaj Finserv and Bajaj Finance were among the gainers.

“Continued sell-off in global markets due to uncertainty over rate cuts impacted the domestic market sentiment, which is currently at an overbought level. The stronger than expected US non-farm payroll data and caution ahead of the release of US inflation data tomorrow kept investors on the edge, said Vinod Nair, Head of Research, Geojit Financial Services.

“The broader market continued its underperformance due to valuation concerns, while investors are rebalancing their portfolios to include safe haven assets like gold,” he added.

Among Asian markets, Japan’s Nikkei 225 index shed 2.2 per cent and South Korea’s Kospi fell 0.8 per cent. Hong Kong’s Hang Seng rose 1.4 per cent and Shanghai Composite jumped 0.7 per cent.

The US markets ended in negative territory on Friday.

Global oil benchmark Brent crude rose by 0.29 per cent to USD 82.32 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 7,304.11 crore on Thursday, according to exchange data.

On Thursday, the 30-share BSE Sensex advanced 33.40 points or 0.05 per cent to settle at a new peak of 74,119.39, while the broader Nifty rose by 19.50 points or 0.09 per cent to close at a record 22,493.55.

Markets were closed on Friday for Mahashivratri.