Mumbai: Market benchmark Sensex declined by 71 points to close at 40,938.72 on Monday, dragged by losses in energy, FMCG and auto stocks amid weak macroeconomic numbers.
The 30-share BSE barometer had opened higher and hit a lifetime high of 41,185.03 in the opening session.
Losses in FMCG, auto, energy and select banking stocks eroded the gains later with Sensex settling 70.99 points or 0.17 percent down at 40,938.72.
#MarketAtClose | Market fails to hold opening highs, closes near day’s low. Sensex slips 246 points from intra-day record high of 41,185; Nifty gives up 12,100, down 81 points from day’s high pic.twitter.com/AZAeqD3n3J
— CNBC-TV18 (@CNBCTV18Live) December 16, 2019
The broader NSE Nifty finished 32.75 points or 0.27 percent lower at 12,053.95 as 37 of its components declined.
ITC was the top loser in the Sensex pack, shedding 1.97 percent, followed by Tata Steel 1.80 percent, HUL 1.57 percent, Vedanta 1.44 percent, Bharti Airtel 1.37 percent and M&M 1.35 percent.
On the other hand, IT stocks rallied due to weakness in the rupee. TCS rose by 2.70 percent, Tech Mahindra 1.60 percent, and HCL Tech by 1.57 percent. Besides, HDFC gained 0.83 percent and Kotak Bank by 0.73 percent.
Vinod Nair, Head of Research at Geojit Financial Services said, "Inflationary pressure and static manufacturing activity impacted the sentiment while trade deal optimism buoyed the global market. Global factors are likely to be more supportive in the near term and market anticipates a better economic growth in coming years which is giving support in every consolidation."
According to analysts investors are also keenly waiting for the upcoming GST council meet to get any cues on overcoming revenue shortfall.
Wholesale price-based inflation rose to 0.58 percent in November, as against 0.16 percent in October due to increase in prices of food articles.
For manufactured products, the wholesale inflation remained static (-)0.84 percent during the month under review.
Traders said an agreement between the US and China over trade tariffs enthused global investors earlier in the day, but the release of weak macro numbers dampened the market sentiment.
Hemang Kapasi, Portfolio Manager - Equity Investment Products, Sanctum Wealth Management said, "Indian markets cooled off today after three straight days of gains. Last week, the markets reacted to positive global events though macro data in India continued to be weak."
While the RBI governor has clarified that there is room for more policy easing, going forward, with high inflation and low industrial output there is limited room available for RBI to cut rates further in the short term, he added.
RBI Governor Shaktikanta Das on Monday said that in February, the market was surprised with the RBI's call to hold rates. He wondered why is it surprised market participants now also with a pause call.
Sectorally, BSE telecom, metal, FMCG, consumer durables, auto and energy indices fell up to 1.59 percent.
While BSE IT, teck, realty, utilities and healthcare indices ended in the green.
Broader BSE midcap and smallcap indices too fell up to 0.46 percent.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a mixed note, while those in Europe were trading significantly higher.
On the currency front, the rupee depreciated 18 paise against the US dollar to 71.01 (intra-day).
Brent futures, the global oil benchmark, was trading flat at $65.23 per barrel.
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Updated Date: Dec 16, 2019 18:04:48 IST