Sensex drops 78 pts, slips below 66,000 on constant foreign outflows
The 30-share BSE benchmark Sensex declined 78 points or 0.12% to settle at 65,945. The broader NSE Nifty dropped 10 points or 0.05% to end at 19,665.
From the Sensex pack, Tech Mahindra, Infosys, Asian Paints, ICICI Bank, and Kotak Bank closed with cuts, while Nestle, Tata Steel, M&M, Bajaj Finance, and HUL closed higher.
Eicher Motors closed 2.6% higher after global brokerage firm Jefferies raised its price target to Rs 4,150 from Rs 4,000.
Shares of Strides Pharma fell 2% after the company announced plans to spin off its CDMO (Contract Development and Manufacturing Organisation) and soft gelatin businesses into a new entity, OneSource.
Nifty IT index fell 0.54% on fears of a delayed demand recovery in the US due to higher interest rates.
Mphasis, Coforge, Tech Mahindra and Infosys were the top losers. Nifty Bank also declined 0.32%, dragged by Bank of Baroda, PNB and Indian Bank.
In the broader market, Nifty Midcap100 fell 0.17%, while smallcap 100 rose 0.57%.
The market breadth was skewed in favour of the bulls. About 1,877 stocks gained, 1,789 declined, and 127 remained unchanged on the BSE.
Expert Take
«Trading remained flat as headwinds from the global market and continued selling by FIIs kept domestic investors under vigil.
While bargain hunting was visible in small-cap stocks due to the recent correction and favourable valuation compared to large and mid-caps, IT indices slid due to the fear of one more rate hike by the Fed and a consequent reduction in spending,» said Vinod Nair, Head of Research at Geojit Financial Services.
Aditya Gaggar, Director of Progressive Shares, said, «After DOJI, Nifty50 has made a Spinning Top candlestick pattern at its strong support area of 19,600-19,635. A firm close above 19,790
