2017 starts with dip in sensex

Mumbai: In a listless trading on Monday, the Sensex closed with a marginal loss of over 31 points at 26,595 on the first trading day of 2017 as banking stocks felt the heat due to worries that the lending rate cuts will hit their bottom line.

Investors started taking profit that made mood downbeat. There was accelerated selling after the manufacturing sector contracted in December, hit hard by demonetisation, and fresh weakness in the rupee.

The Nikkei Markit India Manufacturing Purchasing Managers' Index fell to 49.6, down from 52.3 in November.

Opening on a weak note, the Sensex shuttled between 26,720.98 and 26,447.06 and settled lower 31.01 points, or 0.12 per cent, at 26,595.45.

The gauge had gained 415.78 points in the previous two straight sessions.The 50-share Nifty edged down by 6.30 points, or 0.08 per cent, to close at 8,179.50. It shuttled between 8,212 and 8,133.80 intra-day.

The new year got off to a rocky start, with markets trying to gauge the impact of the Prime Minister's credit sops.