Sensex falls 256 points due to selling in banking, FMCG shares on F&O expiry

Maruti Suzuki was the lead gainer, rising by 2.22%.

Benchmark Sensex closed lower by around 256 points in a volatile trade on Thursday, snapping its three-day gaining streak due to selling in banking, FMCG and oil and gas shares amid weak Asian cues.

The BSE barometer fell by 255.84 points or 0.39% to close at 64,831.41 points with 22 of its constituents ending in the red.

The index opened higher and later touched a high of 65,178.33 in early trade. It, however, failed to hold onto the gains and plunged 553 points from the day's high to touch a low of 64,723.63 amid selling on the expiry of derivatives contracts for August month.

The broader Nifty of NSE also lost 93.65 points or 0.48% to settle at 19,253.80 with 35 of its stocks ending in the red.

"Markets traded volatile on the monthly expiry day and lost nearly half a per cent," Ajit Mishra, SVP, Technical Research, Religare Broking Ltd, said.

"A slew of weak economic indicators from the U.S., including a softened GDP figure, have heightened the likelihood of a pause in the Fed's rate tightening, resulting in a downward trajectory of bond yields," said Vinod Nair, Head of Research at Geojit Financial Services.

However, this development had a limited impact on domestic sentiment on the day of expiry, with the market experiencing declines ahead of the release of India's GDP data, scheduled later in the day, Mr. Nair said.