Stock markets take breather after record-breaking rally; Sensex retreats 377 pts

Mumbai: Benchmark stock indices closed lower on Tuesday due to profit taking by investors after a record-breaking rally and ahead of release of key inflation numbers.

After a two-day rally, the 30-share BSE Sensex fell by 377.50 points or 0.54 per cent to settle at 69,551.03. During the day, it declined 484.68 points or 0.69 per cent to 69,443.85.

The broader Nifty scaled a new lifetime intra-day high of 21,037.90 points before closing below the 21,000 level. The 50-issue barometer declined by 90.70 points or 0.43 per cent to close at 20,906.40.

On Monday, the BSE benchmark surged past the 70,000-level for the first time, reaching its record intra-day peak of 70,057.83. Nifty had settled just below the 21,000 level at 20,997.10, its all-time closing high.

"Following the recent impressive surge, the Nifty-50 has undergone a consolidation phase today due to anticipated elevated November inflation in India, driven by rising food prices, which may potentially delay RBI policy cuts," Vinod Nair, Head of Research, Geojit Financial Services said.

In contrast, the US inflation outlook remains stable, which could influence the upcoming US Fed policy, Nair said.

"Nifty snapped its two-day rally and closed lower in a volatile session. Global equity markets posted moderate moves (mostly positive), with investors reluctant to make big bets in the buildup to this week’s major risk events of US Inflation data and Central Bank meetings," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Among the Sensex firms, IndusInd Bank, Maruti, Titan, Reliance Industries, NTPC, Mahindra & Mahindra, Larsen & Toubro, Kotak Mahindra Bank and HDFC Bank were the major laggards.

UltraTech Cement, JSW Steel, Axis Bank, Tata Consultancy Services, Wipro and ITC were the major gainers.

In the broader market, the BSE midcap gauge fell 0.40 per cent and smallcap index declined 0.27 per cent.

Among the indices, oil & gas went lower by 1.84 per cent, realty fell by 1.82 per cent, energy (1.68 per cent), utilities (1.49 per cent), consumer durables (1.18 per cent), capital goods (1.10 per cent) and industrials (0.94 per cent).

IT, metal and services were the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the postitve territory. European markets were trading mostly in the green. The US markets ended with gains on Monday.

Global oil benchmark Brent crude climbed 0.39 per cent to USD 76.33 a barrel on Tuesday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,261.13 crore on Monday, according to exchange data.