Sensex slips 42 pts after two-day rally; IT, pharma shares fall on profit-taking

Mumbai, Dec 23 (PTI) Benchmark stock index BSE Sensex slipped by 42 points in a volatile trade on Tuesday following profit-taking in IT and pharma shares and mixed global cues.

Snapping the two-day gaining streak, the 30-share BSE Sensex dipped 42.64 points or 0.05 per cent to settle at 85,524.84. The index moved in a range during the day, hitting a high of 85,704.93 and a low of 85,342.99.

The 50-share NSE Nifty closed marginally up by 4.75 points or 0.02 per cent to 26,177.15.

Metals, FMCG and energy shares witnessed buying interest, while IT and pharma saw selective pressure.

Among Sensex firms, Infosys, Bharti Airtel, Adani Ports, Sun Pharma, Tech Mahindra, Eternal, Axis Bank and Maruti were the major laggards.

However, ITC, UltraTech Cement, Tata Steel and HDFC Bank were among the gainers.

"The domestic market traded in a narrow range and ended flat amid mixed global cues. Selling pressure persisted across most sectors, though financials and FMCG offered marginal support.

"Going forward, investors are positioning for the next earnings season and monitoring evolving Fed policy expectations, as rate cut probabilities are slowly inching up for the January meeting," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The BSE smallcap index climbed 0.38 per cent and midcap gauge went up marginally by 0.07 per cent.

Among sectoral indices, IT declined by 0.71 per cent, followed by BSE Focused IT (0.70 per cent), realty (0.21 per cent), consumer durables (0.10 per cent).

However, BSE commodities climbed 0.68 per cent, followed by utilities (0.59 per cent), metal (0.52 per cent), power (0.40 per cent), financial services (0.36 per cent) and energy (0.36 per cent).

Markets traded in a subdued manner on the weekly expiry day and ended almost unchanged, taking a pause after the recent rebound, Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

"Equity markets ended the session on a flat note, weighed down by broad-based profit-booking at higher levels in the absence of fresh positive triggers," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index settled in positive territory, while Hong Kong's Hang Seng index ended lower.

Markets in Europe were trading on a mixed note. US markets ended higher on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 457.34 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, remained buyers as they bought equities worth Rs 4,058.22 crore.

Brent crude, the global oil benchmark, went up by 0.10 per cent to USD 62.13 per barrel.

On Monday, the Sensex jumped 638.12 points or 0.75 per cent to settle at 85,567.48. The Nifty climbed 206 points or 0.79 per cent to close above the 26,000 mark at 26,172.40. PTI SUM MR MR