Stock markets snap six-day rally; Sensex slumps over 400 points

Sensex and Nifty break six-day winning streak with steep fall amid profit booking and mixed global cues.

Equity benchmark indices Sensex and Nifty broke their six-day winning run on February 21 and settled with a steep fall amid fag-end selling triggered by a rush for profit booking and mixed global cues.

The 30-share benchmark Sensex stayed mostly firm during intra-day but settled 434.31 points or 0.59% lower at 72,623.09 points. It touched the intra-day low of 72,450.56, down 0.83% from previous closing level of 73,057.40 points.

Similarly, the broader Nifty also paired all its intra-day gains before closing 141.90 points or 0.64% down at 22,055.05 points. The 50-share barometer had hit a lifetime peak of 22,196.95 points on February 20 and remained mostly in the upward trajectory on February 21.

In the Sensex pack, 20 stocks ended in the red while 37 of the Nifty constituents closed the session with losses.

NTPC was the biggest loser among the Sensex constituents, ending with a loss of 2.71%. It was followed by PowerGrid, Wipro, HCLTech, L&T and Tech Mahindra.

In contrast, Tata Steel, SBI, JSW Steel and IndusInd Bank closed in the positive territory. Tata Steel gained 1.99% and SBI ended 1.51% higher.

Vinod Nair, Head of Research at Geojit Financial Services, said the Indian market is facing stiff resistance at higher levels and the valuation of a broader index is at a significant premium, leading to an unfavourable risk reward, which influences investors to book profits.