Benchmark indices on Monday gave up nearly all gains scored on the first session of Samvat 2080 as investors sold IT and financials ahead of the release of retail inflation data.

The 30-share Sensex crashed more than 406 points during intra-day trades to touch a day’s low of 64853.36 but recovered some ground to close at 64933.87, marking a fall of 325.58 points or 0.50 per cent. The broader Nifty declined 82 points or 0.42 per cent to settle at 19443.55.

At the Muhurat session held on Sunday, the Sensex had climbed 354.77 points, while the Nifty had gained more than 100 points with IT stocks leading the rally.

Analysts said equities are likely to consolidate around the current levels in a holiday truncated week with investors reacting to the inflation data on Wednesday.

They added that global factors which are not conducive to a runaway rally will keep share prices under check.

“Domestic equities were on Monday post strong gains witnessed during the first session of Samvat 2080 on Diwali. This was largely due to the absence of domestic participation amid festive vibes and the market holiday on Tuesday. In this truncated trading week, we expect the market to consolidate in a broader range due to lack of major events and the second quarter earning season coming to an end,’’ Siddhartha Khemka, head — of retail research, Motilal Oswal Financial Services said.

Among the Sensex firms, Bajaj Finance, Infosys, Tech Mahindra, ICICI Bank, Nestle, Tata Consultancy Services, HDFC Bank and Reliance Industries were the major laggards as they lost up to 1.32 per cent.

CIL shines

The Coal India stock jumped 5.26 per cent to Rs 349.25 as brokerages upgraded their target price on the back of better-than-expected results in the second quarter.

Jefferies India upgraded Coal India to buy from hold and increased the target price by 19 per cent to Rs 385 a share.

Motilal Oswal also increased its target price by 18 per cent to Rs 380 and retained a buy rating.

Goldman upbeat

Goldman Sachs upgraded Indian shares to “overweight” from “marketweight”, citing strong economic growth prospects, steady domestic mutual fund inflows and a potential supply chain shift from China.

Indian markets will continue to gain in 2024, supported by steady earnings growth and macroeconomic stability in what would otherwise be a “tricky” period in the Asia Pacific region, Goldman analysts said. With inputs from Reuters