Market benchmarks tumble on profit booking

Benchmark stock indices Sensex and Nifty closed sharply lower on Monday amid a rush for profit taking and mixed trends in global markets.

The 30-share BSE Sensex settled 523 points or 0.73 per cent lower at 71,072.49. The benchmark touched the lowest level of 70,922.57 during intra-day trade.

The broader NSE Nifty also closed 170.05 points or 0.78 per cent at 21,612.45.

As many as 22 stocks of the 30-share index settled in red while 34 constituents of Nifty50 closed the session with losses.

In the Sensex pack, NTPC, Tata Steel, SBI and IndusInd Bank were among the major laggards.

In contrast, Wipro, HCL Tech, Mahindra & Mahindra and Nestle were among the nine stocks that defied the trend.

BSE smallcap index fell 3.16 per cent while midcap lost 2.62 per cent and largecap closed 0.90 per cent lower.

In Asia, Tokyo's Nikkei 225 closed 0.9 per cent higher and China's Shanghai Composite went up 1.28 per cent. Hong Kong's Hang Seng fell 0.83 per cent.

European markets were trading on a mixed note with CAC 40 of France and DAX of Germany rising, while London's FTSE 100 in the negative.

Global oil benchmark Brent crude declined 0.50 per cent to $81.78 a barrel on Monday.

Foreign Institutional Investors (FIIs) purchased shares worth Rs 141.95 crore on Friday, according to exchange data.

On Friday, Sensex climbed 167.06 points or 0.23 per cent to settle at 71,595.49 points while the Nifty gained 64.55 points or 0.30 per cent to close at 21,782.50 points.

Repee gains 7 paise at 83

The rupee appreciated 7 paise to close at 83 (provisional) against the US dollar on Monday, on softness in the American currency and easing crude oil prices.

However, weak domestic markets and foreign fund outflows capped sharp gains, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.01 against the greenback. The unit hit an intra-day high of 82.98 and a low of 83.02.

The local unit finally settled at 83 (provisional) against the dollar, higher by 7 paise from its previous close of 83.07.

"We expect the rupee to trade with a slight positive bias, positive global equities and a slight correction in the greenback.

"However, any bounce back in crude oil prices amid ongoing geopolitical tensions in the Middle East and selling pressure from foreign investors may weigh on the rupee at higher levels," said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

Traders may take cues from India's CPI and IIP data.

"Headline inflation is expected to ease to 5.09 per cent from 5.69 per cent. Investors may remain vigilant ahead of US inflation data on Tuesday," Choudhary said, adding the USD-INR spot price is expected to trade in range of Rs 82.80-83.20.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent higher at 104.15.

Brent crude futures declined 0.50 per cent to $81.78 a barrel on Monday

Meanwhile, India's forex reserves jumped by $5.736 billion to $622.469 billion for the week ended February 2, the Reserve Bank said on Friday.

In the previous week, the overall reserves had increased by $591 million to $616.733 billion.

Brent crude down

Crude oil futures on Tuesday declined 0.18 per cent to Rs 6,070 per barrel as participants trimmed their positions on low demand.

On the Multi Commodity Exchange, crude oil for February delivery fell Rs 11 or 0.18 per cent to Rs 6,070 per barrel with a business volume of 12,914 lots.

Globally, West Texas Intermediate crude oil traded 0.44 per cent higher at $73.10 per barrel, while Brent crude declined 0.50 per cent to $81.78 a barrel on Monday