Sensex sheds 346 points, declines for 4th day on foreign fund outflows, thin year-end trading

Mumbai: Benchmark stock indices Sensex and Nifty closed lower on Monday due to selling in oil & gas and IT shares, foreign fund outflows and thin year-end trading.

Extending the downtrend to the fourth day running, the 30-share BSE Sensex declined by 345.91 points or 0.41 per cent to settle at 84,695.54. During the day, it dropped 403.59 points or 0.47 per cent to 84,637.86.

Registering its third day of decline, the 50-share NSE Nifty edged lower by 100.20 points or 0.38 per cent to 25,942.10.

From the 30-Sensex firms, Adani Ports, HCL Tech, Power Grid, Trent, Bharat Electronics and Bharti Airtel were among the biggest laggards.

However, Tata Steel, Asian Paints, Hindustan Unilever, and Eternal were among the gainers.

"The market appears short on catalysts for further upside, with investors largely in holiday mode, signalling a potential consolidation phase in the near term," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Ajit Mishra, SVP, Research, Religare Broking Ltd, said that market sentiment continues to be guided by global cues and stock-specific developments. "Trading volumes remained light, with participants preferring selective exposure rather than broad-based positions in the absence of any major triggers."

In Asian markets, South Korea's Kospi jumped over 2 per cent. Shanghai's SSE Composite index settled marginally higher, while Japan's Nikkei 225 index and Hong Kong's Hang Seng index ended lower. Equity markets in Europe were trading mostly lower.

US markets ended flat on Friday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 317.56 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 1,772.56 crore, according to exchange data.

Brent crude, the global oil benchmark, jumped 1.70 per cent to USD 61.67 per barrel.

On Friday, the Sensex dropped 367.25 points or 0.43 per cent to settle at 85,041.45. The Nifty declined by 99.80 points or 0.38 per cent to 26,042.30.