Sensex, Nifty Snap Three-Day Winning Streak On Broad-Based Selling Pressure

The Indian equity benchmarks snapped their three-day winning streak on Friday on the back of a broad-based selling pressure. The benchmarks staged a gap up opening mirroring gains in other Asian markets. However, due to profit taking at higher levels, benchmarks nosedived in afternoon trading. The Sensex fell as much as 1,283 points from the day's highest level and Nifty 50 index tumbled below its important psychological level of 15,000. Reliance Industries, ICICI Bank, Kotak Mahindra Bank, HDFC, HDFC Bank, Maruti Suzuki and Axis Bank were among the top drags on the Sensex.

The Sensex dropped 487 points or 0.95 per cent to close at 50,792 and Nifty 50 index fell 144 points or 0.95 per cent to end at 15,031.

"The market's short-term technical condition appears like a sideways correction is in the process. While it is subject to further price action evolution, it is prudent and suggested to wait for a decisive breakout above 15,300 and technical factors to improve before going long in the market. The traders are advised to refrain from building a new buying position until further improvement is seen and a breakout above 15,250. The volatility is observed to expand in today's trading session indicating profit booking and stock distribution at a higher market level," Ashis Biswas, head of technical research at CapitalVia Global Research told NDTV.

Selling pressure was broad-based as all the 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty PSU Bank index's nearly 2 per cent fall.

Nifty Bank, Financial Services, Metal, Pharma and Private Bank indexes fell over 1 per cent.

Small-cap shares bucked the overall weak trend as Nifty Smallcap 100 index rose 0.4 per cent.

On the primary market front, Anupam Rasayan India shares were witnessing good demand in the ongoing Initial Public Offering (IPO). The issue was subscribed 0.85 times till 3:20 pm, data from National Stock Exchange showed.

Bajaj Auto was top Nifty loser, the stock fell 3 per cent to close at Rs 3,751. Adani Ports, HDFC Life, SBI Life, Hindalco, Maruti Suzuki, Sun Pharma, Reliance Industries, Hero MotoCorp, UltraTech Cement, IndusInd Bank, State Bank of India, ICICI Bank and Kotak Mahindra Bank also fell between 1.5-3 per cent.

On the flipside, Bharat Petroleum, Indian Oil, Power Grid, JSW Steel, Titan, ONGC, Infosys and Shree Cements were among the notable gainers.

The overall market breadth was negative as 1,656 shares ended lower while 1,352 ended higher on the BSE.