Stock market update: Sensex, Nifty closes lower after 6-days of surge
Tracking weakness in Asian peers, the domestic stock market closed lower on Tuesday, amid concerns whether China and the US will be able to resolve trade differences.
The NSE Nifty finished at 10,869, down 14 points and the BSE benchmark index Sensex shed 106 points to end at 36,134, from the previous close.
The market was pulled down because of loss in banking, financial sectors and FMCG stocks. However, advances in IT stocks kept the downside in check. Top laggards on the 50-scrip index were Sun Pharma, Grasim Industries, HDFC Mahindra & Mahindra and State Bank of India (SBI), finishing between 1.5 percent and 2.7 percent lower.
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Analysts say that investors in the domestic markets remained cautious ahead of election results for some states next week.
Neeraj Dewan, director, Quantum Securities said, “Our markets are under performing, awaiting (state) election results next week. Other parameters like crude price and trade war concerns have turned positive.”
It is predicted that the result of elections in Madhya Pradesh and Mizoram, among others, will set the tone for the national elections scheduled in May 2019.
Apparently, caution also prevailed a day ahead of the release of the Reserve Bank of India’s bi-monthly policy statement.
While referring to the monetary policy meeting on Wednesday, Neeraj Dewan also said that the Reserve Bank of India (RBI) policy cannot be hawkish in the inflation scenario and crude scenario.