Sensex, Nifty arrest slide but continue to trade in red

Nifty

In Tuesday’s afternoon trade, key equity benchmarks- Sensex and Nifty, managed to hold against further erosion in numbers but could not recoup the losses from the morning.

At 2 PM, BSE Sensex was down 246.60 points at 31,828.18 while the broader NSE Nifty was at 9,861.05, down by 54.90 points.

Cigarette makers on Tuesday were choking in trade, with market leader ITC being hit the worst, its stock falling as much as 15 per cent to Rs 276.90 on the BSE, which reduced its market value to Rs. 3.37 lakh crore, compared to Monday’s closing value of Rs. 3.96 lakh crore. The slump comes on the back of the GST (Goods and Services Tax) Council led by Finance Minister Arun Jaitley on Monday evening hiking compensation cess on cigarettes. The hike came into effect from the midnight of Monday and Tuesday.

The analysts had predicted a correction in markets after the bullish run last week. On the back of profit booking and weak Asian and global cues, the concerns came out to be true.

In afternoon trade, Aurobindo Pharma, GAIL, Reliance and NTPC were the major losers along with ITC which continued to lose around 13 per cent. ACC, Asian Paints, Axis Bank and Dr. Reddy‘s managed to gain on an otherwise disappointing day.

Source: Times Of India

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