Stock markets snap 4-day rally amid profit booking; Trent tumbles over 12%

Benchmark stock indices Sensex and Nifty closed lower on Tuesday due to last-minute profit-taking after a four-day rally and weak Asian trends.

Paring its early gains, the 30-share BSE Sensex declined by 104.35 points, or 0.13 per cent, to close at 78,180.72. During the day, it climbed 379.85 points, or 0.48 per cent, to 78,664.92.

The 50-share NSE Nifty dipped 31.65 points, or 0.13 per cent, to end at 24,398.70. Sensex and Nifty had rallied more than 2 per cent in the last four sessions to hit more than two-month high levels on Monday.

Among Sensex shares, Trent emerged as the top loser, tumbling 12.42 per cent after its June quarter revenue growth missed market expectations.

Adani Ports, Bharat Electronics, Larsen & Toubro, Reliance Industries and ICICI Bank were also among the laggards.

Gains in IT shares, however, capped losses in key indices. HCL Tech led the gains, rising by 3.08 per cent ahead of the announcement of financial results. Tech Mahindra, Infosys, and Tata Consultancy Services also advanced. TCS will announce the quarterly results on Thursday, marking the start of earnings season for Indian IT players.

Among others, Titan jumped 2.62 per cent after the company reported a 41 per cent growth in its revenue for the June quarter of FY27, driven by strong performances across its jewellery, watches and eyewear segments. Eternal rose by 2.12 per cent.

“Profit booking emerged in the latter half of the session as weakness across Asian markets and investor caution ahead of the US Fed minutes weighed on sentiment. However, IT stocks continued to lend support, extending gains ahead of the June-quarter earnings season as the sector recovered from recent corrections,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

The BSE SmallCap Select index declined 1.08 per cent and the MidCap Select index dipped 0.15 per cent.

Sectorally, Capital Goods dropped 1.73 per cent, followed by Realty lost 1.61 per cent, Industrials (1.49 per cent), Power (1.12 per cent), Metal (1.04 per cent), Commodities (0.90 per cent) and Hospitals (0.90 per cent).

Focused IT surged 2.25 per cent, IT jumped 2.12 per cent, Consumer Durables (0.65 per cent), MidSmall Private Banks Quality Tilt (0.55 per cent) and Oil & Gas (0.09 per cent). A total of 2,633 stocks declined, while 1,599 advanced and 165 remained unchanged on the BSE.

“Indian equities ended marginally lower, snapping a four-session winning streak, as weak cues from Asian markets and a renewed attack on an oil vessel in the Strait of Hormuz dampened investor sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said. Brent crude, the global oil benchmark, jumped 1.22 per cent to $72.87 per barrel.

In Asian markets, South Korea’s Kospi tanked 4.91 per cent. Japan’s Nikkei 225, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng also ended lower. Markets in Europe were trading on a mixed note. US markets ended higher on Monday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 243.03 crore on Monday, according to exchange data.

On Monday, the Sensex jumped 521.16 points, or 0.67 per cent, to settle at 78,285.07. The Nifty climbed 159.50 points, or 0.66 per cent, to end at 24,430.35.