BENGALURU: India’s Nifty 50 and Sensex fell on Monday after rallying to record highs for most of this month as high-weightage banks took a breather following a recent rise.
The benchmark NSE Nifty 50 index lost 0.18% to 21,418.65 points, while the S&P BSE Sensex settled 0.24% lower at 71,315.09.
Banks and financials lost 0.57% and 0.39%, respectively, after rising about 2% each in the last two sessions. Financial services is the heaviest sector in the Nifty 50 index.
ICICI Bank and IndusInd Bank dropped 1.5% and 1%, respectively, and led the losses in the Nifty 50.
Information technology stocks, the second-heaviest sectoral index, shed 0.27%. It snapped a two-session rally, where the index rose about 8%.
IT companies, which earn a significant share of their revenue from the US, jumped last week after the US Federal Reserve’s policy commentary raised hopes of a rate cut in the first half of 2024.
The more domestically-focussed small- and mid-caps gained 0.22% and 0.56%, respectively, outperforming the blue-chips.
“Large-caps offer better risk-reward balance given more reasonable valuations compared to lofty valuations of most small- and mid-cap stocks,” said analysts at Kotak Securities.
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