Sensex snaps three-day winning streak, shed 175 points

MUMBAI: The stock markets on Tuesday shed 175 points to end the day at 9,822.52, snapping a three-day strong winning streak, largely influenced by sluggish Asian trend amid negative FII activity.

However, indices of mid-cap and small-cap segments recorded handsome gains.

In continued volatility, the Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) fluctuated erratically and after touching the intra-day low of 9,745.17 ended the day at 9,822.52, a net fall of 175.32 points or 1.75 per cent.

The Sensex had risen by a whopping 1,068.40 points or 12 per cent in the last three trading sessions, necessitating a downward correction.

The National Stock Exchange's (NSE) S&P CNX Nifty also dropped sharply by 55.60 points or 1.91 per cent to 2,861.30 from previous close of 2,916.90.

Institutional investors intensified pressure in the last 30 minutes, minimising the recovery during the mid-session.

The negative reaction was mainly attributed to selling by Foreign Institutional Investors (FIIs), which reportedly were heavy sellers in derivatives segment on June 19, besides the influence of global markets.

After hectically covering positions in the last few days, FIIs were believed to be engaged in hedging at higher levels, market players said.

Meanwhile, in Asian markets, the Nikkei was sharply down by 211.94 points, the Kospi by 25.84 points and the Hang Seng by 159.89 points.