Nifty, Sensex slip as IT, financial sectors weigh

Market slips: Benchmark indices Nifty and Sensex witnessed a marginal decline on Tuesday, with weaker performance in the information technology (IT) and financial sectors amid concerns over potential delays in interest rate cuts.

The NSE Nifty 50 index slipped 0.13 per cent, while the BSE Sensex shed 0.15 per cent, following record highs achieved on Monday, driven by strong performance in metal stocks fueled by robust industrial data from China.

Sunny Agrawal, head of fundamental equity research at SBICaps Securities, noted that domestic equities are likely to consolidate in the coming days until the next key trigger, which is earnings announcements.

Financial services, the highest-weighted sub-index on the Nifty, dropped by 0.31 per cent after three consecutive sessions of gains, partly due to the Reserve Bank of India (RBI) easing provision norms on investments into alternative investment funds.

IT stocks, sensitive to US interest rate changes, fell by 0.5 per cent after US manufacturing data suggested strength in the economy, raising concerns about potential delays in rate cuts by the Federal Reserve.

Amid the overall decline, domestically-focused small and mid-cap indices showed resilience, each gaining about 0.5 per cent.

Aditya Birla Fashion and Retail surged by 15 per cent after announcing plans to demerge Madura Fashion & Lifestyle, a move expected to enhance its operational efficiency.

Among Nifty 50 stocks, Bajaj Auto saw a 2 per cent increase in share price following a 25 per cent annual jump in total vehicle sales for March.

Adani Ports gained 2.25 per cent after Citi reiterated a "buy" rating on the stock and raised its target price, citing positive prospects.

(With Reuters Inputs)