Benchmark equity indices declined on Tuesday, a day after recording sharp gains, with the BSE Sensex falling over 1 per cent because of selling in Reliance Industries, ITC and Bajaj Finance.
The 30-share BSE Sensex fell by 801.67 points, or 1.11 per cent, to settle at 71139.90. During the day, it plummeted 865.85 points, or 1.20 per cent, to 71075.72.
The Nifty declined 215.50 points or 0.99 per cent to 21,522.10.
Among the Sensex firms, Bajaj Finance fell by 5.17 per cent after its December quarter earnings failed to cheer investors. Titan, UltraTech Cement, Bajaj Finserv, Reliance Industries, ITC and NTPC were among the other major laggards. Tata Motors, State Bank of India, Hindustan Unilever, PowerGrid, Tech Mahindra and Tata Consultancy Services were the gainers.
“Selling intensified towards the fag end as investors further slashed their positions in key stocks ahead of the Budget while weakness in several Asian indices also contributed to the overall fall.
“With just one day left for the Budget, investors want to play it safe although there would not be any big-bang announcement by the government in this budget. Focus would rather shift to US Fed policy. Indications are that it may maintain the status quo on interest rates, which could unsettle investors further,” said Prashanth Tapse, senior VP (research), Mehta Equities.