Markets fall for second day running; IT counters drag

Representational image only.
| Photo Credit: Reuters

Market benchmark indices declined in early trade on May 17, extending their previous day’s fall, dragged down by IT counters and a weak trend in the U.S. equities.

The 30-share BSE Sensex fell 100.87 points to 61,831.60 after a flat start to the trade. The NSE Nifty dipped 29.1 points to 18,257.40.

Among the Sensex firms, Wipro, Infosys, HCL Technologies, Tata Consultancy Services, Tech Mahindra, Hindustan Unilever, Bajaj Finserv, and Bajaj Finance were the major laggards.

Bharti Airtel, IndusInd Bank, Larsen & Toubro, ITC, UltraTech Cement, and State Bank of India were among the gainers.

In Asia, Seoul, and Tokyo markets were trading in the green, while Shanghai and Hong Kong quoted lower. The U.S. market ended lower on May 16.

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

“As a batsman approaches a century, he might get stuck for a while in the ‘nervous nineties’. It appears that the market is in a similar state while approaching a new all-time high. Even though the conditions are favourable for a new record, there are near-term issues such as the U.S. debt ceiling impasse which can weigh over global markets in the near-term,” V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Meanwhile, global oil benchmark Brent crude climbed 0.16% to $75.03 per barrel. On Tuesday, the 30-share BSE benchmark had declined 413.24 points or 0.66% to settle at 61,932.47. The Nifty went lower by 112.35 points or 0.61% to end at 18,286.50.

“Caution is likely to prevail further and one may see extended profit-booking in next few sessions, as investors would focus on global mood,” Prashanth Tapse, senior vice-president (Research) at Mehta Equities Limited, said.