Updated February 26th, 2024 at 15:55 IST

Nifty, Sensex slip over 0.6% dragged by IT, metals, consumer durables

The blue-chip index NSE Nifty 50 settled 0.41% lower at 22,122.05 and BSE Sensex slipped 0.48% to 72,790.13.

Reported by: Business Desk
Stock market crash | Image:Republic World
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Stock market news: Benchmark indices, NSE Nifty 50 and S&P BSE Sensex, ended the day in red amid a steep fall in information technology stocks and profit booking. The blue-chip index NSE Nifty 50 settled 0.41 per cent lower at 22,122.05, after hitting record highs in each of the five sessions last week. The BSE Sensex lost 0.48 per cent to 72,790.13.

The drop today is because of normal profit booking that has been happening above 22,000 levels for the Nifty, said Kranthi Bathini, equity strategist at WealthMills Securities, adding that such bouts are "part and parcel" of the bull market.

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Nine of the 13 major sectors logged losses. Nifty IT declined 1.17 per cent, ahead of a key US inflation reading later in the week, which could influence the Federal Reserve's future rate trajectory. If US inflation remains elevated, it will force the Fed to switch back to a more hawkish policy stance, which will weigh on IT stocks, said analysts at Systematix Institutional Equities.

Asian markets were subdued ahead of key inflation readings, including from Japan and Europe, later in the week. Among individual stocks, Asian Paints lost about 4 per cent, the most on the Nifty 50, and continuing its decline since Grasim launched its paints business on February 22.

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Alkem Laboratories fell 6.6 per cent after a report said the income tax department found ‘bogus’ tax claims worth over Rs 1,000 crore. The drugmaker has denied the allegations of tax evasion. Larsen and Toubro gained 2.43 per cent in hopes of margin improvement for the March quarter. The company's construction business also bagged an order worth between Rs 1,000 crore and Rs 2,500 crore.

Paytm jumped 5 per cent after regulators took steps that could ensure the embattled fintech would continue processing digital payments.

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(With Reuters inputs.)

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Published February 26th, 2024 at 15:55 IST