MUMBAI: The equity markets started the week on a negative note as weakness in overseas equities and caution ahead of the announcement of India Inc’s quarterly results triggered profit booking across the board. After opening the day on a negative note, the markets continued with their downward march with the Sensex sliding 296.02 points or 1.11 per cent to end the day at 26,271.97. The Nifty shed 93.15 points or 1.17 per cent to close at 7,852.40.
“The selling pressure gained momentum after economic data showed that Germany’s industrial output figures posted its worst fall in last five and a half years. Following this, the European equities witnessed heavy selling. Global investors are also awaiting comments from FOMC, slated to be released on Wednesday, which will give a hint about a possible interest rate hikes especially in the light of the strong US jobs data,” said Sanjeev Zarbade, vice president, research, private client group, Kotak Securities.
According to the provisional data released by stock exchanges, foreign portfolio investors (FPI) sold shares worth '332.84 crore.
“Ahead of the earnings season, cautious investors booked profits in those sectors, which had witnessed a steep rally in recent months. Investors are also now seeking safety of margins by staying invested in defensive sectors like information technology and pharma. Both these sectors are expected to come out with pretty decent results on the back of improving demand in the United States and strengthening of the US dollar,” said Uday Narayan Dubey, vice president, institutional desk, R.K Global.
The broad based selling on Tuesday resulted in all the BSE indices ending the day in the red.
