Markets extend losses for 5th session; metal, bank stocks major drag

Equity market benchmark indices Sensex and Nifty stayed on the back foot for the fifth straight session on Thursday as investors offloaded metal, banking and finance stocks amid a lacklustre trend in global markets.

Heavy foreign fund outflows after a hike in securities transaction tax and short-term capital gains tax also impacted markets’ sentiment negatively.

After a sharp fall in intra-day trade, the 30-share BSE Sensex managed to recover some of the lost ground to settle 109.08 points or 0.14 per cent lower at 80,039.80, as a sharp rally in Tata Motors and Larsen & Toubro restricted markets fall. During the day, it tanked 671 points or 0.83 per cent to 79,477.83.

The NSE Nifty dipped 7.40 points or 0.03 per cent to 24,406.10. Intra-day, it tumbled 202.7 points or 0.83 per cent to 24,210.80.

From the Sensex pack, Axis Bank declined over 5 per cent after the company’s June quarter earnings failed to cheer investors.

Nestle, Titan, ICICI Bank, Tata Steel, IndusInd Bank, ITC, JSW Steel and State Bank of India were the other laggards.

Among the gainers, Tata Motors jumped nearly 6 per cent.

Larsen & Toubro, Sun Pharma, Kotak Mahindra Bank, Bajaj Finance and Power Grid also ended in the positive territory.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower.

European markets were trading in the negative territory. The US markets ended significantly lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,130.90 crore on Wednesday, according to exchange data.

Global oil benchmark Brent crude declined 1.73 per cent to USD 80.31 a barrel.

The BSE benchmark declined 280.16 points or 0.35 per cent to settle at 80,148.88 on Wednesday. The NSE Nifty dropped 65.55 points or 0.27 per cent to 24,413.50.