Sensex, Nifty end down nearly 1% as banking, auto stocks drag1 min read . Updated: 06 Dec 2019, 04:13 PM IST
- The selling pressure was broad-based in Indian markets
- Banking and auto stocks led the losers
Indian markets fell sharply today, driven by sharp losses in banking and auto stocks. The Sensex ended 334 points lower at 40,445 while Nifty settled at 11,914, down about 0.9%. Among the Sensex stocks, Yes Bank shares slumped 11% while SBI shares dropped 5.5%.
Among other top losers, ITC, Axis Bank, ONGC, Maruti Suzuki, Sun Pharma, HDFC, M&M, Tata Motors and IndusInd Bank fell between 1.5% and 3.5%.
The broader markets also suffered sharp losses. The BSE midcap and smallcap indices 1.3% and 0.9% respectively.
Ajit Mishra of Religare Broking said the recent decline shows disappointment among the participants post the RBI policy outcome as the majority were hoping for a rate cut.
"The Nifty has breached its immediate support at 11,900 and we may see further profit taking ahead. However, we feel it’s a healthy correction and 11,700-11,800 zone would continue to act as a cushion," he added.
Vinod Nair, head of research at Geojit Financial Services, said some profit-taking was seen amid concerns over economic growth outlook and premium valuation.
The Reserve Bank of India on Thursday kept surprisingly kept interest rates steady as against market expectations of a 25 bps cut.
Global markets are mostly higher today after US President Donald Trump said that trade talks with China were "moving right along". Uncertainties over a deal have pushed some investors to the sidelines in recent sessions. (With Agency Inputs)