India News | Markets End Mildly Lower for Second Day; Kotak Bank Spurts 3 Pc

Mumbai, Sep 8 (PTI) The Sensex and Nifty closed with modest losses for the second straight session on Wednesday amid lack of fresh buying triggers and a lacklustre trend overseas.

A weakening rupee, which tumbled for the third consecutive day, further sapped risk appetite.

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After swinging over 400 points in a choppy session, the 30-share BSE Sensex ended 29.22 points or 0.05 per cent lower at 58,250.26.

Similarly, the broader NSE Nifty slipped 8.60 points or 0.05 per cent to 17,353.50.

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Nestle India was the top loser among the Sensex components, shedding 2.44 per cent.

Maruti Suzuki slipped 1.33 per cent after the country's largest carmaker said its total production in August declined by 8 per cent due to the global semiconductor shortage.

Bajaj Finserv, Bajaj Auto, TCS, L&T, Infosys and Tech Mahindra were among the other laggards.

On the other hand, Kotak Bank topped the winners' chart with a gain of 2.94 per cent, followed by Titan, NTPC, Sun Pharma, Axis Bank, HUL and SBI.

In the broader markets, textile stocks were in focus after the Cabinet approved a production-linked incentive (PLI) scheme worth Rs 10,683 crore for the textiles sector with an aim to boost domestic manufacturing and exports.

"Domestic bourses witnessed modest contraction mainly led by profit booking in IT and auto stocks. Further, weak cues from global equities also weighed on investors' sentiment," said Binod Modi, Head - Strategy at Reliance Securities.

Buying was seen in midcap and smallcap stocks as recent contraction in this space made risk reward proposition favourable for a number of stocks, he added.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Domestic market opened on a flattish note while the cautious trend in the global market forced Indian equities to trade lower amid lingering concerns over rising COVID cases and slowing economic recovery."

"However, supported by a recovery in broader markets, the key indices ended on a flat note. The Cabinet's approval of the PLI scheme for man-made fibres and technical textiles will help in improving the industry's outlook," he noted.

Sector-wise, BSE teck, IT, telecom, auto, metal and basic materials indices shed up to 0.75 per cent, while power, consumer durables, bankex, utilities, oil and gas, finance and capital goods ended with gains.

Broader BSE midcap and smallcap indices outperformed the benchmarks, jumping up to 0.81 per cent.

World stocks were on the backfoot ahead of the European Central Bank's policy meeting amid concerns over economic recovery and inflation.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended with losses while Tokyo closed on a positive note.

Equities in Europe were trading mixed in the afternoon session.

Meanwhile, international oil benchmark Brent crude rose 0.98 per cent to USD 72.39 per barrel.

Depreciating for the third straight session, the Indian rupee fell 18 paise to close at 73.60 against the US dollar.

Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 145.45 crore, as per exchange data.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)