Benchmark indices BSE Sensex and Nifty 50 snapped their three-day winning runs tracking losses in US and European stocks futures.
The Nifty 50 index was down 97 points, or 0.5 percent, at 17,683 points while the BSE-Sensex was at 59,202, down 0.6 percent or 356.3 points.
Investors at home were reacting to the sharp selling seen in US stock futures earlier in the day with NASDAQ futures down over 2 percent and S&P 500 futures down nearly 1 percent in Asian trading.
The decline was being led by shares of Meta, formerly known as Facebook, as they plummeted more than 20 percent in after-market trading in the US following the company’s weaker-than-expected earnings.
The decline in Meta’s stock reverberated across the globe on other social media and technology stocks. At home, the Nifty IT index, which has moved in conjunction with US tech stocks in recent months, fell 1.1 percent and was the top contributor to the decline in the Nifty 50 along with Housing Development Finance Corporation.
HDFC’s stock sunk 3 percent as investors chose to book profits in the scrip after near 2 percent gains on February 2 following the company’s December quarter earnings.
The weakness in the global markets meant that foreign investors continued to remain net sellers of Indian stocks in the cash market, dealers said. At the same time, dealers pointed to muted buying by domestic institutional investors after two days of strong buying activity.
That said, market participants also alluded to profit taking by traders after a strong three-day upmove in the market because of the expiry of index options contracts later in the day.
“The markets are facing some upside pressure and have resisted around the 17,800 level. That has now become a crucial patch to get past for the markets to start a new upward trajectory,” said Manish Hathiramani of Deen Dayal Investments.
In the broader market, activity was mixed with midcap index matching the losses in their largecap peers but smallcap index outperforming. The Nifty Midcap 100 was down 0.4 percent while the Nifty Smallcap 100 index was up 0.1 percent.
Shares of Godrej Properties tanked over 5 percent after the company reported a more than 40 percent sequential decline in sales booking for the quarter ended December despite the launch of several new projects. The losses in Godrej Properties saw the Nifty Realty index fall 1.2 percent.
Jubilant Foodworks’ stock staged a smart recovery after falling more than 5 percent earlier in the session on likely bargain hunting. The company’s weak same-store sales growth in the December quarter was met with a cut in earnings estimates from brokerages.
Overall, the breadth of the market was positive as advancing stocks outnumbered declining ones on the National Stock Exchange. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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