Extending previous session's fall, markets made a negative start on Wednesday and slipped further down as the day progressed. The sentiments were dampened as the country’s services sector activity contracted for the first time in 13 months in May, largely due to decline in new order flows amid competitive pressure. Also, overhang of RBI’s cautious stance in monetary policy and latest IMD report on monsoon was clearly visible. Barring IT, all the sectoral indices were remained under pressure and lost considerably by the end.
At the close, the benchmark 30-share index, BSE Sensex lost 351.18 points or 1.29% at 26,837.20 with 24 components registering drop. Meanwhile, the broad based NSE Nifty fell by 101.35 points or 1.23% at 8,135.10 with 43 components posting drop.
Commenting on the outlook, Jayant Manglik, President-retail distribution, Religare Securities said, 'For short term traders, we reiterate our advice to continue with sell on rise approach as we expect Nifty to retest psychological mark of 8,000 in near future. On the other hand, it's an opportunity for investors to start accumulating fundamentally strong counters gradually with medium to long term investment horizon.'
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