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    Closing Bell: Sensex, Nifty extend losses to 2nd day; IT stocks under pressure after TCS results

    Closing Bell: Sensex, Nifty extend losses to 2nd day; IT stocks under pressure after TCS results

    Closing Bell: Sensex, Nifty extend losses to 2nd day; IT stocks under pressure after TCS results
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    By Sandeep Singh   IST (Published)

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    The Sensex and the Nifty50 continued to decline for a second straight session in a holiday-truncated week amid weakness across most sectors though a fag-end recovery in financial shares lent some support.

    Indian equity benchmarks extended losses to a second straight day on Tuesday, dragged by oil & gas, IT and metal shares though a fag-end rebound in financial shares lent some support. Investors awaited more earnings reports from India Inc a day after Tata Consultancy Services (TCS) kicked off the earnings season.
    Both headline indices finished the day with cuts of 0.8 percent, having fallen more than one percent during the session. The Sensex shed 388.2 points to end at 58,576.4 and the Nifty50 settled at 17,530.3, down 144.7 points from its previous close.
    Investors lost Rs 3.2 lakh crore in wealth as the market capitalisation of BSE-listed companies declined to Rs 271.9 lakh crore.
    Weakness across global markets dented the sentiment on Dalal Street amid rising concerns about aggressive tightening of pandemic-era monetary policies. News flow on the Russia-Ukraine war and rising COVID infections in China remained on investors' radar.
    Hindalco, Coal India, Grasim, Tata Motors, Tata Steel, Bajaj Auto and Tech Mahindra -- closing with losses of between 2.2 percent and 5.8 percent -- were the biggest laggards among blue-chip stocks. On the other hand, Axis Bank, Kotak Mahindra Bank, PowerGrid, ICICI Bank and IndusInd -- rising between 0.6 percent and 1.6 percent -- rose the most among the 11 gainers in the Nifty50 pack.
    Reliance Industries, Infosys and Larsen & Toubro were the biggest drags on the 30-scrip index.
    A comeback in financial stocks -- especially from the private banking space -- in the final hours of trade saved the main gauges from deeper losses. The Nifty Bank finished the day up 0.4 percent, having dropped as much as 0.9 percent during the session.
    IT stocks remained under pressure throughout the day with TCS failing to hold on to intraday gains. The country's largest IT company on Monday reported a 1.6 percent sequential increase in net profit to Rs 9,926 crore for the quarter ended March 2022 and 3.5 percent growth in revenue to Rs 50,591 crore.
    Analysts in a CNBC-TV18 poll had estimated the IT major's quarterly net profit at Rs 10,050 crore and revenue at Rs 50,390 crore.
    The metal index fell 2.7 percent amid falling global rates.
    Investors awaited official data on consumer inflation in the country due later in the day. Last week, the RBI brought back its focus to retail inflation from growth -- a switch made in 2020 to tackle the fallout from the pandemic.
    Broader markets also bore the brunt of a risk-off sentiment on the Street. The Nifty Midcap 100 dropped 1.9 percent, and its smallcap counterpart 1.6 percent.
    In the midcap and smallcap segments, Birlasoft, Sanofi, Dilip Buildcon and Sequent Scientific -- declining around 4-7 percent -- were the top laggards.
    Just Dial, Mazagon Dock, Cochin Shipyard and Solara Active -- rising 3-10 percent -- were among the top gainers.
    Overall market breadth was in favour of the bears, with an advance-decline ratio of 1:3 as 545 stocks rose on NSE and 1,550 fell.
    Global markets
    European shares hit a near one-week low dragged by banking names. The pan-European Stoxx 600 was down 0.9 percent in early hours.
    S&P 500 futures were up 0.1 percent, suggesting a cautious start ahead on Wall Street.
    Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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