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Sensex, Nifty snap four-day rally as banks, IT stocks drag
Photo Credit: Reuters

Indian shares ended lower on Thursday, dragged by losses in financial and IT stocks, tracking broader market sentiment on concerns over a setback to US stimulus talks and a spike in global COVID-19 cases.

The Nifty closed down 0.35% at 11,896.45, while the Sensex ended 0.37% lower at 40,558.49, both snapping four straight sessions of gains.

The Nifty Bank Index ended 0.61% lower, weighed down by losses in lenders HDFC Bank Ltd and ICICI Bank Ltd, which closed 1.07% and 1.76% lower, respectively.

The Nifty IT Index, which has gained 7.3% so far this month, ended the session 0.76% lower. Shares of Infosys Ltd ended the day 1.68% lower and was among the top drags.

"IT stocks are undergoing some profit-taking because of stretched valuations and we are not getting a clear picture for bank stocks because of moratoriums in place," said Anita Gandhi, director at Arihant Capital Markets.

Tata Consultancy Services shed 0.16%, after the company was reported to be a potential buyer for Deutsche Bank's IT services division, Postbank Systems.

Shares of conglomerate Reliance Industries closed down 0.8% and Dr.Reddy's Laboratories ended the day 0.4% lower after the drugmaker isolated all its data centre services as a preventive measure following a cyberattack.

World shares slid to a two-week low as global COVID-19 cases surged and as US President Donald Trump accused Democrats of being unwilling to craft an acceptable compromise on a COVID-19 stimulus bill.

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