The Sensex and Nifty declined on Thursday, dragged down by IT and FMCG stocks, while caution prevailed in global markets ahead of China-US talks on tariffs.
The US dollar today consolidated recent bumper gains after the Federal Reserve reaffirmed the outlook for more rate hikes.
Reports that the Trump administration is considering executive action to restrict some Chinese companies’ ability to sell telecoms equipment in the United States were a dampener. The Sensex ended 73 points lower at 35,103 while Nifty settled at 10,679, down 38 points.
“Sentiment has been on the lower side because of uncertainty with respect to trade talks.. There’s also stock-specific reaction, and IT stocks are volatile,” said Anand James, chief market strategist, Geojit Financial Services.
Shares of InterGlobe Aviation, the operator of IndiGo carrier, slumped 10 per cent after it posted a 73 percent plunge in profit on Wednesday.
Biocon Ltd’s shares lost 5 per cent after its Bangalore sterile drug product facility got seven observations from US FDA and six from an European regulator.
HCL Technologies Ltd continued to hurt sentiment. Its March-quarter profit missed analysts’ estimate and weakened mood among other IT majors. HCL Tech slumped over 7 per cent today.
Other top Nifty50 losers included UPL, Eicher Motors and Kotak Mahindra Bank, down between 2 per cent and 3 per cent.
Among the top Nifty50 gainers were Sun Pharma, Bharti Infratel, Tata Steel, NTPC and Axis Bank, up between 2 per cent and 3.6 per cent.