Benchmark equity indices extended their fall for another session with the Nifty marking longest losing streak -- eight sessions -- since Feb 28, 2023 and Sensex recording a fourth session of decline.
Intraday, the Nifty fell as much as 0.8% to hit 23,350.40, its lowest level since June 5 and the Sensex as well fell 0.8% to its lowest level since June 24.
The indices fell despite positive developments for the country's economy including Moody's growth forecast for 2024 and CLSA's reversed stance on Chinese stocks, increasing its overweight position on India, in light of the potential risks posed by renewed trade tensions with the U.S. under President-elect Donald Trump.
Nifty ended 0.3% or 78.9 points lower at 23,453.80 and the Sensex ended 0.3% or 241.3 points lower at 77,339.01.
"We are of the view that, the current market texture is weak but oversold hence; we could expect one quick pullback rally from the current levels," said Shrikant Chouhan, head of equity research at Kotak Securities. He said for the day traders now, 23,350/76,950 would act as a key support zone.
"If market succeeds to trade above the same, then it could bounce back till 23,600/78,000," he said. "Further upside may also continue which could push the market till 23,700/78,200."
Shares of Infosys Ltd., Tata Consultancy Services Ltd., Reliance Industries Ltd., Axis Bank Ltd., and ICICI Bank Ltd. dragged the Nifty.
While those of HDFC Bank Ltd., State Bank Of India, Hindalco Industries Ltd., Mahindra & Mahindra Ltd., and Hindustan Unilever Ltd. minimised the fall.
Most sectoral indices ended higher with Nifty Metal rising the most and Nifty IT was the top loser.
Broader markets ended lower on Monday. The BSE Midcap outperformed benchmark indices and settled 0.17% lower. BSE Smallcap index settled 0.69% lower to underperform the benchmark indices.
On BSE, 12 sectors ended lower and nine advanced. The BSE Metal rose the most, while the BSE IT declined the most.
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