Markets snap 3-session winning streak led by fall in financials
Photo Credit: Reuters

Stocks snapped a three-session run of gains on Tuesday as banking and technology stocks lost steam ahead of key economic growth data.

Nifty closed 0.46% lower at 16,584.55, dragged by a 3.1% drop in Sun Pharmaceutical Industries after it posted a loss for the March quarter.

The index clocked a 3% loss for May.

The S&P BSE Sensex ended 0.64% lower at 55,566.41 and logged a 2.6% loss in May.

Over the last three sessions, both indices benefited from a rally in beaten down technology stocks, while strong March-quarter results from Mahindra and Mahindra on Monday lifted auto shares.

The carmaker carried those gains into Tuesday, rising 3.4% to a record peak and driving Nifty Auto up 1% at close.

Investors were also cautious ahead of economic growth data expected later in the day. A Reuters poll last week showed the country's economic recovery from the COVID-19 pandemic likely stumbled again.

Financial stocks also pressured domestic markets.

Nifty Finance, Nifty Bank and Nifty PSU Bank, which tracks state-run banks, closed down more than 1.2% each.

A 12.2% drop in Adani Green Energy dragged Nifty Energy 1.08% lower, though losses were capped by a 5% rise in Oil and Natural Gas Corp as oil prices inched higher.

Nifty IT snapped a three-day rally to close down 0.25%. It clocked losses for a second straight month and finished May 6.2% lower.

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