Daijiworld Media Network - Mumbai
Mumbai, Dec 2: Domestic equity markets closed lower on Tuesday as investors opted for profit booking amid continued foreign fund outflows and caution ahead of the Reserve Bank of India’s upcoming policy announcement.
The Sensex ended at 85,138.27, down 503.63 points (0.59%), after opening weak at 85,325.51 and slipping further to an intraday low of 85,053.00. The Nifty 50 also declined, settling at 26,032.20, down 143.55 points (0.55%).
Analysts attributed the decline to pressures created by a weakening rupee and consistent selling by Foreign Institutional Investors (FIIs). They noted that the NSE’s sectoral index restructuring—aligned with SEBI’s updated framework—triggered corrections in several major banking stocks.
Near-term sentiment, they added, may remain cautious due to fading hopes of an RBI rate cut following robust GDP numbers, as well as uncertainties surrounding ongoing US–India trade discussions.
Among the Sensex constituents, ICICI Bank, Axis Bank, HDFC Bank, BEL, L&T, PowerGrid, Bajaj Finserv, M&M, ITC, Tata Motors PV, and HCL Tech ended in the red. Asian Paints, Bharti Airtel, Maruti Suzuki, Bajaj Finance, and Hindustan Unilever posted gains.
Most sectoral indices also traded lower.
• Nifty Financial Services dropped 249 points (0.10%).
• Nifty Bank fell 407 points (0.68%).
• Nifty Auto slipped 13 points (0.05%).
• Nifty FMCG was down 109 points (0.20%).
Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, said, “Private banks and financial services led the decline, down 0.7% and 0.8% respectively. In contrast, PSU banks gained 0.5%, marking a second straight day of gains.” He added that rate-sensitive sectors such as Auto, Realty, and Consumer Durables saw notable profit booking.
Despite the selling pressure, monthly auto volumes for November exceeded expectations, with strong post-festive movement backed by improved dealer inventories and leftover festive demand.
The broader market mirrored the benchmarks:
• Nifty Smallcap 100 fell 98 points (0.55%),
• Nifty Midcap 100 slipped 132 points (0.22%), while
• Nifty 100 ended 126 points (0.47%) higher.
Market participants now await clarity from the RBI’s monetary policy meeting later this week.