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Mumbai, Nov. 18 (PTI): Market benchmark Sensex dropped by 72 points to close at 40,284.19 on Monday due to losses in private banks, IT and energy stocks amid concerns over the economic slowdown.
The 30-share index had opened on a firm note but turned negative in afternoon session due to profit booking in IT, banking and oil and gas stocks.
Similarly, the broader NSE Nifty slipped 10.95 points, or 0.09 per cent, to end at 11,884.50. As many as 29 of its constituents advanced while 20 dropped.
Yes Bank was among the top losers in the Sensex pack, falling up to 4.08 per cent, followed by Bajaj Auto, M&M, Hero MotoCorp, HDFC Bank, ONGC and TCS which declined up to 2.05 per cent.
On the other hand, Bharti Airtel, Tata Steel, Sun Pharma, PowerGrid, IndusInd Bank, Axis Bank, SBI, Vedanta and Tata Motors rose up to 4.60 per cent.
Broader BSE midcap and smallcap indices outperformed benchmarks, rising up to 0.44 per cent.
Despite positive cues from global markets, sentiment in the domestic market was subdued on account of multiple reports suggesting that the pace of India's economic growth may falter further, traders said.
"Post Q2 results, market seems to have entered an indecisive period of trade having rallied well in the last two months and lack of major data releases this week. Globally, investors are awaiting triggers on resolution of US-China trade tension and future interest rate trajectory of US central bank. In the short-term volatility may stay but banks are expected to do well given a new life to distressed asset," Vinod Nair, Head of Research, Geojit Financial Services said.
Markets remained flat throughout the day as investors were cautious, Paras Bothra, President of Equity Research, Ashika Stock Broking said.
Sectorally, BSE capital goods, auto, energy, FMCG, IT and industrials indices fell up to 0.68 per cent.
While BSE telecom, metal, basic materials, healthcare and utilities indices rose up to 3.42 per cent.
Metal stocks closed higher as the sentiment turned positive for base metals with the news that US and China are progressing gradually and in a more constructive manner on trade tariff front, Kotak Securities Senior Vice-President, Equity Technical Research, Shrikant Chouhan said.
NSE Metal index rose by 1.79 per cent, led by gains in Tata Steel (4.41 per cent), Hindalco (3.33 per cent) and SAIL (2.75 per cent).
Market breadth was negative as 1,404 stocks declined while 1,154 gained on BSE.
Bourses in Hong Kong, Tokyo and Shanghai settled on a positive note amid optimism about US-China trade talks while those in Seoul ended in the red.
European equities were trading on a mixed note in their respective early deals.
Meanwhile, the Indian rupee depreciated marginally to 71.79 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, rose 0.09 per cent to USD 63.36 per barrel.
The rupee pared early morning gains to settle down by 6 paise at 71.84 against the US currency on Monday due to continued forex outflows and gains in the dollar in global markets.
Forex traders said investor traded cautiously after domestic equity market also shed its morning gains and witnessed selling pressure during the day.
The 30-share index, which opened on a firm note, turned negative in the afternoon session before ending 72.50 points, or 0.18 per cent, down at 40,284.19. Similarly, the broader NSE Nifty slipped 10.95 points, or 0.09 per cent, to end at 11,884.50.
At the interbank foreign exchange market, the rupee had opened at 71.67 against the US dollar. Later, the local unit lost ground and fell to the day's low of 71.86.
The domestic unit finally settled at 71.84, lower by 6 paise over the previous closing price. On Friday the rupee had settled at 71.78 against the American currency.
"Rupee rose in the first half of the session but was weighed down in the latter half following some recovery in the dollar against its major crosses," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private Ltd.
Somaiyaa further noted that pound continued to rally after UK Prime Minister Boris Johnson said that all Conservative Party candidates in the upcoming election have pledged to back his Brexit deal.
"We expect that the momentum could continue on the upside for the next couple of sessions but any escalation on Brexit uncertainty could keep gains capped for the currency," he said.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out INR 270.66 crore on Monday, exchange data showed.
Brent futures, the global oil benchmark, fell 0.35 per cent to USD 63.08 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 per cent to 97.90.
The 10-year government bond yield was at 6.48 per cent on Monday.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.7109 and for rupee/euro at 79.04. The reference rate for rupee/British pound was fixed at 92.36 and for rupee/100 Japanese yen at 66.04.
Gold fell by INR 85 to INR 38,775 per 10 gram on Monday, tracking weak international prices, according to HDFC Securities.
On Saturday, the yellow metal had closed at INR 38,860 per 10 gram.
"Spot gold prices for 24 Karat in Delhi were trading lower by INR 85 on strangled spot demand and weak international prices. The weakness in rupee, which fell around 7 paise against the dollar during the day, limited the down side in gold prices," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
Silver prices also tumbled by INR 290 to INR 45,250 per kg from INR 45,540 per kg.
In the international market, gold prices were trading lower at USD 1,464 an ounce, while silver was quoting at USD 16.88 per ounce.
International spot gold prices remained in the trading range below USD 1,470 an ounce as round of positive comments on the US-China trade deal cheered investor sentiments, he added. PTI