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A drop in Indian equity benchmarks Sensex and Nifty on Tuesday snapped the six-day winning streak for both as profit-taking in IT, metal, and capital goods shares led the decline.

While 30-share BSE Sensex declined by 277.93 points or 0.33 per cent to settle at 84,673.02; the 50-share NSE Nifty dipped 103.40 points or 0.40 per cent to 25,910.05.

During the day, Sensex had dropped 392.59 points or 0.46 per cent to 84,558.36 amid a weak trend on global markets.

Among Sensex firms, Tech Mahindra, Infosys, Bajaj Finance, Bajaj Finserv, Eternal, Adani Ports, Hindustan Unilever and Bharat Electronics were the major laggards, while Bharti Airtel, Axis Bank, Asian Paints and Titan were among the gainers.

Analysts said diminished expectations of a US Fed rate cut in December also weighed on investor sentiment.

 

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“The domestic equity market edged lower as investors booked profits after the recent rebound, mirroring weak global sentiment.

Expectations of a US Fed rate cut in December have diminished, weighing on sentiment, with IT, metal, and realty stocks declining amid a stronger dollar,” observed Vinod Nair, Head of Research, Geojit Investments Limited.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index settled sharply lower.

European markets were also trading in the red, as were the US markets, which ended in negative territory on Monday.

Meanwhile, the Commerce and Industry Minister Piyush Goyal on Tuesday said “you will hear a good news” on the proposed trade pact between India and the US once the deal is fair, equitable and balanced, bringing in a certain amount of uncertainty to news of the trade deal finalisation.

Foreign Institutional Investors (FIIs) bought equities worth ₹442.17 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs) also bought stocks worth ₹1,465.86 crore in the previous trade.

Brent crude, the global oil benchmark, dipped 0.40 per cent to USD 63.94 per barrel.

Rallying for the sixth consecutive day on Monday, the Sensex had climbed 388.17 points or 0.46 per cent to close at 84,950.95. The Nifty had edged higher by 103.40 points or 0.40 per cent to settle at 26,013.45.