Market rally fizzles as oil and outflows bite

Mumbai: Benchmark stock index Sensex fell nearly 548 points to settle below 72,000 on Monday as selling in banking, FMCG and IT shares weighed on the market amid rate-hike concerns, a spike in crude prices and unabated foreign fund outflows. Erasing opening gains, the 30-share BSE Sensex tumbled 547.65 points, or 0.76 per cent, to settle at 71,924.68. During the day, it slumped 796.23 points, or 1 per cent, to 71,676.10. The 50-share NSE Nifty dropped 157.10 points, or 0.70 per cent, to end at 22,363.35. Among the 30 Sensex firms, ITC was the biggest loser, dropping by 3.23 per cent. Tech Mahindra (-3.1 per cent), Hindustan Unilever (-2.1 per cent), Larsen & Toubro (-1.87 per cent), State Bank of India (-1.78 per cent) and Tata Consultancy Services (-1.67 per cent) were among the major laggards. Bharat Electronics, Mahindra & Mahindra, Kotak Mahindra Bank and HCL Tech were among the major winners. Analysts said global and domestic macroeconomic concerns continued to weigh on sentiment.

Brent crude, the global oil benchmark, jumped 1.14 per cent to USD 105.8 per barrel. Foreign institutional investors offloaded equities worth Rs 3,568.90 crore on Friday, according to exchange data.

"Indian markets failed to hold on to early gains as sentiment weakened amid a rise in the 10-year bond yield to a three-year high and continued FII outflows driven by external uncertainties," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The broader market advanced, with the BSE SmallCap Select index jumping by 1.65 per cent and MidCap Select index gaining 0.66 per cent.

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