MUMBAI: Benchmark indices snapped a two-day winning streak on Monday, with sensex falling 876 points, or 1.2%, to 73,853 and Nifty declining 257 points, or 1.1%, to 22,889 as selling in private sector banks and IT stocks weighed on sentiment. Sensex opened 211 points lower at 74,518, while Nifty started 63 points down at 23,083. Selling intensified through the session.Axis Bank was the biggest laggard among Nifty constituents, falling 4.2%. HDFC Bank declined 2.3% and Tata Motors lost more than 3%. On the other hand, JSW Steel gained 2%, ONGC rose 1.4% and State Bank of India advanced 1.2%.
According to Vinay Rajani, senior technical research analyst at HDFC Securities, Nifty is approaching support at 22,800, where it could resume its uptrend. “However, a decisive break below the positional support at 22,500 would weaken the bullish outlook and warrant caution,” he said. Most sectoral indices ended lower, with private banks, IT and FMCG among the worst hit. The Nifty PSU Bank index was the only sectoral index to finish in positive territory, gaining 2.5%, while the Nifty Private Bank index fell 1.9%. Union Bank gained 5.3%, highlighting the divergence between public and private sector lenders.Disappointing quarterly earnings from major private lenders, elevated crude oil prices and continued foreign investor outflows added to the pressure. Results from HDFC Bank and Axis Bank missed consensus expectations amid concerns over shrinking net interest margins. Brent crude traded around $107-108 a barrel amid geopolitical tensions and conflict risks in West Asia, raising concerns about inflation and India’s import bill. Foreign institutional investors, meanwhile, net sold equities worth Rs 1,149 crore.