Indian stocks fell for a fourth consecutive session on Monday, erasing gains earlier in the day, as European shares were hit by sagging commodity prices and on caution ahead of a likely increase in US interest rates as early as June.
Broader sentiment was muted ahead of a deluge of corporate results and the expiry of derivative contracts this week.
The 30-share BSE index Sensex ended lower by 71.54 points or 0.28 per cent at 25,230.36 and the 50-share NSE index Nifty ended down by 18.65 points or 0.24 per cent at 7,731.05.
Among BSE sectoral indices, capital goods index fell the most by 0.91 per cent, healthcare 0.84 per cent, IT 0.83 per cent and realty 0.71 per cent. On the other hand, FMCG index was the star-performer and was up 2.12 per cent, followed by power 0.3 per cent and consumer durables 0.25 per cent.
Top five Sensex gainers were ITC (+5.29%), Adani Ports (+1.77%), Bharti Airtel (+0.99%), HUL (+0.85%) and Coal India (+0.47%), while the major losers were Tata Steel (-2.88%), Lupin (-2.57%), ONGC (-2.18%), Cipla (-1.94%) and Bajaj Auto (-1.8%).
“We have F&O (futures and options) expiry and a whole host of large and mid-cap companies reporting this week and the next. My sense is that markets would be subdued and we may see bouts of short-selling depending upon how earnings are going to unfold,” said Gaurang Shah, vice president at Geojit BNP Paribas.
Shares of ITC jumped over 5 per cent after the cigarette maker on Friday posted operating earnings above expectations and said cigarette volumes were flat though positive after declining for 11 consecutive quarters.
Among other gainers, National Aluminium Co Ltd rose 3.58 per cent ahead of a board meeting on May 25 to consider share buyback.
Power Grid Corp of India rose 2.56 per cent after the BSE Ltd and S&P Dow Jones Indices had said on Friday that the stock would be added to the benchmark index from June 20.
However, biscuits maker Britannia Industries dropped 8.61 per cent after March-quarter results missed analysts' estimates
Global markets
European shares inched higher on Monday, helped by gains in tech and healthcare stocks, but Fiat Chrysler slumped on a report raising emissions issues and Bayer dropped after making an offer for Monsanto.
The pan-European FTSEurofirst 300 index, which had risen 1.3 per cent in the previous session, was up 0.2 per cent at 1,329.6 points by 0820 GMT.
Asian shares rose on Monday after a solid session on Wall Street, while the dollar moved away from recent highs though remained supported as investors bet that the US Federal Reserve was on track to raise rates sooner rather than later.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent, after US shares rallied on Friday, shrugging off growing expectations of further tightening in monetary policy.