Stock markets decline for 4th day on weak global trends, trade deal uncertainty

Mumbai, Dec 18: Benchmark stock indices Sensex and Nifty closed lower for the fourth consecutive day on Thursday amid a muted trend in global markets and uncertainty over a trade deal with the US.

Falling for the fourth day, the 30-share BSE Sensex shed 77.84 points or 0.09 per cent to settle at 84,481.81 in a volatile session. During the day, it moved between a high of 84,780.19 and a low of 84,238.43, gyrating 541.76 points.

The 50-share NSE Nifty ended flat, skidding 3 points or 0.01 per cent to 25,815.55. After a muted start, the Nifty attempted a recovery during the first half but failed to sustain higher levels later in the day.

Losses in energy, auto and pharma shares dragged indices down, while gains in IT shares helped trim losses. Select buying in financials and metals also aided recovery in the pre-close session.

Among Sensex firms, Sun Pharma declined the most by 2.74 per cent. Tata Steel fell by 1.26 per cent, Power Grid by 1.15 per cent and Asian Paints by 0.89 per cent. HDFC Bank, L&T, NTPC and Bharti Airtel were also among the laggards.

However, Tata Consultancy Services jumped 1.94 per cent, Tech Mahindra by 1.74 per cent and Infosys by 1.51 per cent. Adani Ports, Axis Bank and HCL Tech were also among the gainers.

Sentiment continued to be influenced by global cues and currency-related concerns, which kept traders cautious, Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

“After three consecutive declines, early gains were supported by value buying and a rupee recovery aided by central bank intervention. However, lingering uncertainty over a potential US-India trade deal dampened sentiment, prompting profit-booking later in the day,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

In the broader equity market, BSE midcap gauge went up by 0.05 per cent, but smallcap index dipped 0.28 per cent.

Among sectoral indices, power declined by 1.01 per cent, followed by oil & gas (0.81 per cent), capital goods (0.80 per cent), utilities (0.75 per cent) and industrials (0.66 per cent).

However, BSE Focused IT jumped 1.24 per cent and Information Technology climbed 1.10 per cent. Services (0.79 per cent), realty (0.33 per cent) and financial services (0.13 per cent) also advanced.