Benchmark equity indices BSE Sensex and NSE Nifty opened in the red following weak global cues. The 30-share Sensex was down 146 points, or 0.35 per cent, at 41,411 in early trade, while the 50-share Nifty index traded 36 points, or 0.29 per cent, lower at 12,219.
Reports suggesting that the government might breach the fiscal deficit target this financial year, amid a drop in the revenue mobilisation and expected additional expenditure, also impacted market sentiment.
According to Dun & Bradstreet’s Economy Forecast, the need for fiscal stimulus has increased even as the government finances remain “strained”.
However, Motilal Oswal Financial Services believes that the overall trend is positive and it maintains buy on dips strategy till the Nifty holds above 12,150 levels.
“On the upside, we may see an up move towards 12,350 then 12,400 zones, while on the downside support is seen at 12,200 then 12,150 levels,” the brokerage house said.
As many as 21 stocks in the Sensex pack were trading in the red with Tech Mahindra falling the most at 1.62 per cent. It was followed by IndusInd Bank (down 0.81 per cent), Hero MotoCorp (down 0.71 per cent), Infosys (down 0.49 per cent) and ICICI Bank (down 0.49 per cent). On the other hand, Larsen & Toubro, HUL, Axis Bank, Sun Pharma and ITC were up between 0.25 per cent and 0.55 per cent.
Among the sectoral indices on BSE, IT, TECk, Bankex and Auto were down between 0.25 per cent and 0.50 per cent. The BSE Healthcare, Capital Goods, Telecom were up over 0.20 per cent.
The US markets ended lower on Monday as investors booked profits from gains made this month after the United States and China reached a trade deal. Asian markets are trading lower in early deals on Tuesday on the last trading day of 2019, echoing falls on Wall Street.
Source: Economic Times