Sensex Cracks Again, Loses Nearly 5% In 5 Trading Sessions

The Sensex sunk again in trade on Tuesday, which was the fifth straight trading day of losses in a row, thus losing almost 5% in 5 trading sessions.

The benchmark index was down nearly 600 points in trade, thanks to a sharp slump in banking stocks. The Sensex was last seen trading below the 58,000 points level.

Reliance Industries, which dropped 4% in trade on Monday, following the deferment of a stake sale to Saudi Aramco, dropped another 1.5% in trade today. Shares in One 9 Communications, the parent of PAYTM managed to buck the trend and was up 6% in trade.

Among the losers in trade were Infosys, ICICI Bank, Wipro, HUL and Bajaj Auto from the Nifty pack.

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, "Overall market is likely to continue with its consolidation as valuations are rich while the global cues are keeping markets volatile - inflation concerns have dominated headlines and the Fed is starting the tapering programme soon. Investors would also be eyeing the Covid situation in Europe and its impact on the economic activities. Thus, in the near term, market may remain under pressure until fresh positive triggers appears and stock specific action is likely to continue. Markets will take direction from macro data that is expected to be released during the week. The U.S. and the euro zone will release manufacturing and service data on Tuesday. Further data from the U.S., including the Fed minutes from its latest meeting, GDP and initial jobless claims, will be released on Wednesday ahead of Thursday's Thanksgiving holiday.