Markets end 3-day rally, Sensex drops 770 pts; HDFC, Infy, L&T, Bajaj twins lead fall

The domestic benchmarks snapped their 3-day gaining streak and closed lower on Thursday as investors resorted to profit booking after a recent rally and mixed global cues. The market witnessed broad-based selling with all sectoral indices, except auto and consumer durables, ending in red. The weak cues from European markets and negative trading in the U.S. futures also dragged the market lower.

The BSE Sensex closed 770 points, or 1.29%, lower at 58,788, and the NSE Nifty fell 220 points, 1.24%, to 17,560.

In a similar fashion, the broader markets also ended lower. The S&P BSE Midcap index fell 0.9%, and the S&P BSE Smallcap index shed 0.4%.

The overall market breadth on the BSE was positive, with 1,862 shares advancing out of total 3,721 traded stocks. Out of the total shares, 1,742 shares declined and 117 were unchanged.

IT, Tech stocks lead fall

On the sectoral front, all indices, barring auto and consumer durables, ended in negative terrain, while IT and technology declined the most.

The BSE IT index was the worst performer with a 2% loss, led by L&T Technology Services, Ramco Systems, Mindtree, MphasiS, and Intellect Design Arena.

The IT sector was followed by the technology sector, which ended at 1.76% lower. The top losers in the tech space were Inox Leisure, Mindtree, MphasiS, Larsen & Toubro Infotech, and Infosys.

Top gainers and losers

Mortgage lender Housing Development Finance Corporation Ltd (HDFC) topped the loser’s chart on the BSE Sensex by falling 3.23%. Some of the other top laggards include Infosys, Larsen & Toubro, Bajaj Finserv and Bajaj Finance which dropped in the range of 1.9% to 2.8%.

On the gaining side, FMCG major ITC emerged as top performer by ending 1.14% higher. The other top gainers include Maruti Suzuki India, Titan Company, State Bank of India, and Asian Paints, which rose up to 1%.

Global stocks show mixed trend

Overseas, Asian share markets and European stocks traded mixed on Thursday, undermining firm cues from Wall Street which finished higher overnight. The caution prevailed in the market ahead of the monetary policy announcements from the Bank of England and the European Central Bank, while rising Omicron cases across the world raised concerns about global economic recovery.

In the Asia-Pacific region, Japan’s Nikkei 225 dropped 1%, Indonesia’s Jakarta Composite shed 0.35%. Australia’s ASX 200 index also settled 0.14% lower. Meanwhile, the Straits Times in Singapore rallied 2%, and South Korea’s KOSPI closed 1.67% higher.

Markets in mainland China, Hong Kong, Taiwan, Thailand were closed for the holiday.

In European markets, Germany’s DAX dropped 0.6% in early deals, while France’s CAC index fell 0.4%. The U.K.’s FTSE 100 index slipped 0.15%, while Spain’s IBEX index tumbled 0.5% in early deals.

On Wall Street, all three U.S. benchmarks closed higher on Wednesday, extending rally for the fourth straight session, supported by strong earnings from Google parent Alphabet and chipmaker Advanced Micro Devices. The benchmark S&P 500 rose 0.94%, the blue-chip Dow Jones index gained 0.63%, and the tech-heavy Nasdaq Composite ended 0.50% higher.