Sensex retreats from record high, ends 189 pts lower as IT stocks, RIL weigh on D-Street

NEW DELHI: Finance Minister Nirmala Sitharaman's announcement of a number of stimulus measures failed to give a lift to benchmark indices as investors sold IT and financial services stocks amid rising concerns over inflation. Buying in metals and pharma stocks capped losses.

Broader market stocks continued to see demand from investors as the rapid rate of vaccinations and a gradual reopening of the economy gave a boost to hopes of recovery in earnings as well.

The 30-share pack Sensex declined 189.45 points or 0.36 per cent to close at 52,735.59. Its broader peer NSE Nifty dropped 45.65 points or 0.29 per cent to 15,814.70. Both indices hit their fresh record high levels before wiping those gains.


"After opening at a record high, the domestic markets slipped into the negative zone tracking cues from global peers due to a spike in Covid cases across Asia. FM's announcement was focused on the Covid-19 relief package mainly for healthcare and stressed sectors, which will benefit the broad economy," said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance:

• Finolex Industries jumps 6% after a strong show in Q4
• India Glycols surges 9% after posting manifold jump in Q4 profit
• IPO debuts: Dodla Dairy up 42%, KIMS gains 20%
• Power Mech Projects spikes 5% after co bags Rs 9,300 cr order
• Thyrocare Tech slumps 9% after PharmEasy announces takeover

Among the blue-chip names, Dr Reddy’s Labs was the top gainer, rising 1.80 per cent. Hindalco, Divi’s Labs, Tata Steel, Tech Mahindra, ONGC, Tata Consumer, Tata Motors and Grasim were among other gainers.

HDFC Life Insurance was the top loser in the Nifty pack, falling 4.13 per cent. Titan, TCS, Shree Cement, Coal India, HCL Tech, Bajaj Finserv, Reliance Industries and Maruti Suzuki were other stocks that ended in the red.

Broader market indices ended higher, outperforming their headline peers. Nifty Smallcap rose 0.37 per cent and Nifty Midcap advanced 0.53 per cent. Nifty 500, the broadest index on NSE, ended down 0.05 per cent.

Gujarat Gas, Bank of Baroda, Crompton Greaves Consumer Electricals, Sequent Scientific, National Aluminium and CSB Bank were top gainers from midcap and smallcap indices, climbing in the range of 4-10 per cent.

Adani Total Gas, IDFC First Bank, Fortis Healthcare, Thyrocare Technologies, Tanla Platforms and Wockhardt were major losers from the broader market space, falling in the range of 1-10 per cent.

The sectoral matrix on NSE was mixed. Nifty PSU Bank was the top gainer, up 2.4 per cent. It was followed by Nifty Pharma and Nifty Metal. Nifty Media was the top loser, down 0.64 per cent. Nifty IT and Nifty Financial Services were other losers.

We reiterate our bullish view and suggest continuing with a stock-specific trading approach. Among the sectors, banking has the potential to trigger the next upmove.

-Ajit Mishra, Religare Broking

Market breadth was in favour of gainers as 1,863 stocks ended in the green, while 1,457 counters settled with cuts. As many as 448 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 24 stocks hit 52-week lows, mostly from the microcap space. About 535 stocks hit upper circuit limits and 295 lower circuit limits.

European markets were trading lower at the last count. London-based FTSE was down 0.54 per cent while Paris and Frankfurt declined 0.45 per cent and 0.19 per cent, respectively. In Asia, barring Singapore and Taiwan, all markets ended in the red.