Sensex snaps 3-day winning run on selling in IT pack

With support from banking, metal and energy counters, the benchmarks managed to pare losses to close flattish.

The 30-share pack Sensex recovered intra-day losses and settled 87 points lower at 54,395. Its broader peer, Nifty50, ended with a negative bias but managed to hold the 16,200 mark.

Shares of TCS fell as much as 4.6 per cent to hit a three-week low after it missed quarterly profit estimates on Friday, while its employee-related expenses soared. The index heavyweight also pulled down the Nifty IT pack by 3 per cent.

was the top loser from the 30-share pack Sensex, falling 5 per cent as news of Adani Group’s entry into the telecom sector sent the shares tumbling. settled 4 per cent lower, a day before its earnings as Street is expecting a weak Q1 performance from the tech major tomorrow. , , , and L&T also settled with cuts.

On the other hand,

jumped over 3 per cent, whereas M&M, DRL, , , , and settled with gains of over 1-2 per cent.

Broader markets outperformed the benchmarks as both midcap and smallcap indices settled 1 per cent higher.

Traders will also keep an eye on India’s retail inflation data, due tomorrow.

India’s June inflation data is expected to remain in line with May’s inflation rate of 7.04 per cent. Meanwhile, the US inflation data due on Wednesday is expected to show a further increase from its current peak level of 8.6 per cent during May, said Vinod Nair, Head of Research at

.

All sectoral indices barring Nifty IT settled with gains. Nifty Metal recovered 3 per cent from intra-day lows, led by gains in Jindal Stainless and Tata Steel.

The market breadth was skewed in favour of the bulls. About 2,096 stocks rose, 1,328 fell and 158 remained unchanged.

Meanwhile, rupee depreciated by 22 paise to close at a fresh lifetime low of 79.48 (provisional) against the US dollar on Monday, tracking a strong greenback overseas and subdued domestic equities.

Markets in Shanghai, Hong Kong and Seoul settled lower, while Tokyo ended higher. Equity markets in Europe were trading lower in mid-session deals. Futures tied to the Dow Jones slipped by 144 points. S&P 500 futures fell 0.6 per cent, and Nasdaq 100 futures lost 0.7 per cent.