The benchmark indices fell to close lower for the fourth consecutive session on Wednesday, as investors sold Infosys and Reliance Industries.
Foreign institutional investors who are in selling mode and jumping in crude prices weighed on sentiment.
Despite a strong start, the gains in Sensex fizzled out and ended lower at 54,088. 39, down 276.46 points or 0.51 per cent, was down by 276.46 points or 0.51 per cent. The index fell by 845.55 points or 1.55 per cent to 53,519. The Nifty dropped 72.95 points or 0.45 per cent to settle at 16,167. Nifty is in the negative for the fourth consecutive session, while Asian markets are mixed, and European markets are up ahead of the inflation report from the US, said Deepak Jasani, Head of Retail Research, HDFC Securities.
Larsen Toubro, Bajaj Finserv, NTPC, Bajaj Finance, Maruti, PowerGrid, Infosys, and ITC were among the top losers today, falling up to 2.30 per cent.
HDFC, HDFC, HDFC, ICICI Bank, Kotak Mahindra Bank, HDFC Bank and Bharti Airtel were among the top Sensex gainers, rising to 1.92 per cent.
Shrikant Chouhan, Head of Equity Research Retail Kotak Securities said Markets displayed volatility but moved in a range before ending lower, as investors pruned their holdings in IT, telecom automobile stocks. Lack of fresh positive cues is forcing investors to abandon their equities and switch to safer havens like gold, etc. The market is still on the bearish side, but we could see a pullback rally in the near future due to markets being oversold territory. The traders believe that 16000 would be a sacrosanct support level and above a pullback rally, which is likely to continue up to 16300 -- 16400 levels. A dismissal of 16000 could increase the weakness up to 15940 -- 15900. Markets in Shanghai, Hong Kong and Tokyo ended up with gains while Seoul settled a little lower in Asia. Equity markets in Europe were quoting higher in the afternoon. Most stock exchanges in the US ended up being higher on Tuesday. International oil benchmark Brent crude jumped by 3.12 per cent to 105.7 per barrel.
Foreign institutional investors offloaded shares worth net Rs 3,960. According to stock exchange data, 59 crore were on Tuesday.