Market extends losses to Day 3 as Sensex drops 237 pts; Nifty falls below 17,500

The benchmark indices retreated after initial gains and ended the holiday-truncated week on a negative note, tracking weakness in global markets and some profit-booking.

The investors weighed inflation risks against the start of the Q4 earnings season and remained cautious ahead of crucial macroeconomic data announcements -- industrial production for February and inflation rate for March and quarterly results of IT major Infosys -- post trading hours.

Falling for the third straight session, the 30-share pack Sensex declined 237.44 points 0.41% to close at 58,338.93. Its broader peer NSE Nifty also settled below the 17,500 mark. Both indices have snapped their two-week winning streak led by a decline in IT counters.


Though the markets opened with capped gains after two days, thanks to buying in select heavyweights such as Reliance Industries, Infosys and a few financials, the sentiment was dampened as four-decade high inflation in the US raised concerns over aggressive Fed rate hikes.

"Capital Goods stocks were sought after today on expectations of a revival in capex spends. March exports rising 20% boosted sentiments even as the street remains cautious on rising inflation and commodity prices and its impact on earnings of companies," said S Ranganathan of LKP Securities.

The broader markets saw demand for hospitality, cement and gas stocks.

Gainers & Losers
ITC was the top Sensex gainer, rising over 1.5%, while ONGC and Apollo Hospitals were the top gainers from the Nift pack, rising 3.14% and 2.37%. Sun Pharma, Hindustan Unilever, State Bank of India, NTPC, and L&T were other stocks that settled with gains after a volatile session.

On the flip side, Maruti was the top Nifty loser as the stock cracked 2.28%. HDFC twins, Maruti Suzuki, Tata Motors and Dr Reddy's Labs ended with cuts.

Sectoral Matrix
Nine out of the 15 sector gauges -- compiled by the NSE -- ended in the red. Nifty Bank and Nifty Financial Services underperformed by falling 0.87%. Nifty Auto slipped as much as 0.84%. FMCG, capital goods, metal and oil & gas indices rose around 0.5% each.

Mid- and small-cap shares finished on a mixed note as Nifty Midcap 100 index inched 0.03 per cent down and small-cap rose 0.19 per cent.

Nine out of the 15 sector gauges -- compiled by the NSE -- ended in the red. Nifty Bank and Nifty Financial Services underperformed the index by falling 0.87%. Nifty Auto slipped as much as 0.84%. FMCG, capital goods, metal and oil & gas indices rose around 0.5% each.

"The onset of the earnings season, the release of key inflation data and ECB policy meeting drove the market this week. Hyperinflation and the risk of elevated policy rate hike placed the global market on its toes impacting the performance of equities with rise in yield," said Vinod Nair of Geojit Financial Services.

With the start of the earnings season, the domestic market is also likely to be buoyed by sector-specific momentum in the coming days, Nair added.

Index Statistics
Market breadth was in favour of gainers as about 1,852 shares advanced, 1,542 shares declined and 135 shares remained unchanged. 194 stocks tested their 52-week highs, whereas 14 others tested their 52-week lows. 8 stocks hit their upper circuit limit, while 3 stocks were locked in the lower circuit.