Snapping the four-day string of gains, the Sensex on Thursday declined by 33 points on selling in banks and oil and gas stocks amid lack of strong signals on monetary easing from US Fed’s two-day meeting.
The Bombay Stock Exchange benchmark index, which had gained 620 points in last four trading sessions, fell by 33.02 points, or 0.19 per cent to 17,224.36 after trading in narrow band.
Around 19 stocks including Tata Motors, ONGC, Cipla and SBI fell in the 30-share index while 11 scrips including NTPC, BHEL, Jindal Steel, ITC and Bajaj Auto rose. Other bluecips RIL and Infosys also ended lower, providing little support.
Dealers said banks shares were under pressure after SBI cut deposit rates, sparking off fears that a similar action by peers might crimp margins. Country’s largest bank during market hours slashed interest rates on domestic term deposits of maturity of 5 years and more by 0.25 per cent.
Global market participants were also disappointed after the Fed refrained from announcing a widely-expected additional stimulus to boost sagging economy, traders said, adding that now all eyes are on the outcome of European Central Bank’s policy meet later Thursday.
“Volatility continues to remain low across the globe which indicates choppy markets,” said Shubham Agarwal, Associate VP & Senior Technical Equities Analyst, Motilal Oswal Securities.
The 50-share National Stock Exchange index Nifty fell by 12.75 points, or 0.24 per cent to 5,227.75.