Mumbai Feb 20 (IANS) Weak global cues coupled with a declining rupee and prolonged outflow of foreign funds pulled the key Indian equity indices lower on Tuesday.
The key indices which opened on a positive note on the back of short covering pared the day s entire gains during late afternoon -- with heavy selling pressure in banking stocks -- and closed a rangebound trade session in the red said market observers.
The wider Nifty50 of the National Stock Exchange (NSE) fell by 18 points or 0.17 per cent to close at 10 360.40 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33 703.59 points -- down 71.07 points or 0.21 per cent -- from its previous session s close.
The BSE market breadth was bearish with 1 513 declines and 1 243 advances.
In terms of broader markets the S&P BSE mid-cap index closed lower by 0.06 per cent and the small-cap index by 0.15 per cent.
"Markets ended with marginal losses on Tuesday after a largely rangebound session. Markets remained in a narrow range till about 2.30 p.m. post which a sharp sell-off was seen especially in banks stocks " Deepak Jasani Head - Retail Research HDFC Securities told IANS.
"The Nifty closed in the red for the third consecutive day on the back of weak global cues and the recent detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB) " he said.
Jasani added that major Asian markets closed on a negative note while European indices like FTSE 100 DAX and CAC 40 were trading in the red.
Following recent developments in the $1.8 billion fraud detected by the PNB shares of Gitanjali Gems on Tuesday tanked for the fifth straight trade session closing 9.91 per cent lower at Rs 30.45 per share. However shares of PNB recouped losses and exited from the negative territory to close 0.13 per cent higher at Rs 116.55.
Vinod Nair Head of Research Geojit Financial Services said: "Market started off on a positive note due to short covering after the recent fall. But the gains did not sustain due to selling pressure in private banks and rising bond yield."
"Strengthening dollar and prospects of increased spending in technology set the IT index attractive. Expiry led volatility is expected in coming days and market participants are likely to stay away from the market."
On the currency front the Indian rupee weakened by 58 paise to close at 64.79 against the US dollar from its Friday s close at 64.21.
In terms of investments provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 850.35 crore while domestic institutional investors purchased stocks worth Rs 1 437.24 crore.
Sectorwise the S&P BSE banking index declined by 172.49 points followed by auto index by 65.75 points and capital goods index by 56.42 points.
On the other hand the S&P BSE consumer durables index edged higher by 347.68 points metal index by 176.58 points and IT index by 37.07 points.
Major Sensex gainers on Tuesday were: Coal India up 1.84 per cent at Rs 310.25; ONGC up 1.11 per cent at Rs 187; Bharti Airtel up 0.85 per cent at Rs 417.65; State Bank of India up 0.75 per cent at Rs 269.65; and Tata Consultancy Services up 0.70 per cent at Rs 2 945.05.
Major Sensex losers were: Mahindra and Mahindra down 2.48 per cent at Rs 709.05; Axis Bank down 1.44 per cent at Rs 531.70; Kotak Bank down 1.09 per cent at Rs 1 045; Yes Bank down 1.06 per cent at Rs 309.30; and Reliance Industries down 0.70 per cent at Rs 919.40.
--IANS
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