Sensex, Nifty drop for 2nd day on selling in IT, tech shares

PTI, May 17, 2023, 5:08 PM IST

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Mumbai: Benchmark stock indices Sensex and Nifty declined for a second straight day on Wednesday due to intense selling in IT, banking and tech stocks amid a mixed trend in global equities.

The 30-share BSE Sensex declined 371.83 points or 0.60 per cent to close at 61,560.64 after a flat start. During the day, it tumbled 592.37 points or 0.95 per cent to 61,340.10.

The NSE Nifty declined 104.75 points or 0.57 per cent to settle at 18,181.75.

”In response to weak global sentiments, domestic investors remained cautious as the US market grappled with recession concerns led by recent economic data indicating slowdown. The US retail sales figures for April reflected a decrease in demand, and ongoing debt ceiling negotiations further dampened market sentiment,” Vinod Nair, Head of Research at Geojit Financial Services, said.

Among the Sensex firms, Kotak Mahindra Bank, Asian Paints, Tata Consultancy Services, HCL Technologies, Infosys, Tata Steel, Wipro, Bajaj Finance, Tata Motors, Titan and Bajaj Finserv were the major laggards.

In contrast, IndusInd Bank, ITC, Bharti Airtel, Maruti, UltraTech Cement, Mahindra & Mahindra and State Bank of India were the gainers.

”Markets lingered in negative territory as cautious investors continued to book profit after the recent spike. The subdued economic readings coming in from the US and China once again raise concerns of a slowing economy and hence recession fears, which is making investors jittery about the future,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

In the broader market, the BSE smallcap gauge climbed 0.25 per cent, while the midcap index dipped 0.16 per cent.

Among the indices, realty declined 1.29 per cent, teck fell by 0.89 per cent, utilities (0.82 per cent), IT (0.79 per cent), oil & gas (0.60 per cent) and telecommunication (0.57 per cent).

FMCG, industrials, auto, services were the gainers.

In Asia, Seoul and Tokyo markets ended in the green, while Shanghai and Hong Kong settled lower. European markets were trading on a mixed note. The US market ended lower on Tuesday.

Foreign Institutional Investors (FIIs) were buyers on Tuesday as they bought equities worth Rs 1,406.86 crore, according to exchange data.

Meanwhile, global oil benchmark Brent crude dipped 0.12 per cent to USD 74.82 per barrel.

On Tuesday, the 30-share BSE benchmark had declined 413.24 points or 0.66 per cent to settle at 61,932.47. The Nifty went lower by 112.35 points or 0.61 per cent to end at 18,286.50.