Sensex, Nifty end lower as IT stocks drag markets

Mumbai, Aug 17 (SocialNews.XYZ) The benchmark indices ended lower on Monday, weighed down by selling pressure in IT and FMCG stocks.

The Sensex declined 281.09 points, or 0.36 per cent, to close at 77,728.16, while the Nifty fell 78.35 points, or 0.32 per cent, to settle at 24,287.65.

Commenting on Nifty technical outlook, experts said that the 24,400 zone remains the immediate resistance area.

"A sustained breakout above 24,400 would be required to improve the near-term structure and support a recovery towards the 24,500–24,600 region," an analyst said.

"On the downside, the 24,300–24,200 zone now remains an important support. A decisive break below 24,250 could intensify selling pressure and drag the index towards the 24,000 psychological mark," as per the market expert.

The experts further added that overall, the bias is likely to remain volatile.

The broader market remained relatively resilient, with the Nifty MidCap index gaining 0.05 per cent and the Nifty SmallCap index rising 0.36 per cent.

Among the major Nifty constituents, Infosys, Sun Pharmaceutical Industries and HCL Technologies were among the biggest laggards, dragging the headline indices lower.

Sectoral performance was mixed, with the Nifty IT index emerging as the worst performer after declining nearly 2 per cent. In contrast, the Nifty Metal and Nifty Realty indices recorded the strongest gains during the session.

Experts said that the market remained subdued as investors adopted a cautious approach, with weakness in key IT stocks offsetting gains in select metal and realty shares.

"On the domestic front, bond yields moved higher following elevated crude price and the RBI's decision to advance the closure of the FCNR(B) deposit window," a market expert stated.

"Globally, a weaker U.S. dollar and softer consumer data have eased concerns over near-term monetary tightening, improving long-term risk appetite," the analyst added.

Source: IANS