Markets end lower ahead of macro data, Sensex dives nearly 350 points

NEW DELHI: Equity indices on Monday turned cautious and finished in red ahead of the key macroeconomic data, set to be released later in the day. The benchmark BSE Sensex lost 346 points or 0.98 per cent to close at 34,813 and the broader NSE Nifty ended 103 points or 0.97 per cent lower at 10,482.

Both the indices had started on a positive note but gave up most of their gains in the late morning deals. On the 30-share BSE pack, except Tata Steel, Kotak Mahindra Bank, Infosys, TCS and L&T, all other stocks finished in red, losing as much as 4.66 per cent. On the NSE platform, only Nifty IT surged, while other sub-indices tracked losses as much as 2.44 per cent.

Several factors, including the uncertainty around liquidity of non-banking financial companies, upcoming elections and ongoing corporate earnings, are bound to keep the market volatile, said Siddharth Sedani, head of equity advisory at brokerage firm Anand Rathi.

The rupee weakening further against the US dollar also weighed on investor sentiments. The Indian currency dipped by 54 paise to 73.04 against the US dollar on Monday, owing to increased demand for the American currency from importers amid increasing global crude oil prices.

Forex traders said besides increased demand for the US currency from importers, the dollar's strength against some currencies overseas weighed on the domestic unit.

(With inputs from agencies)

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