What acted as a ‘Turnaround Tuesday’ for most Asian markets, failed to bring Sensex under its spell as the 30-share BSE benchmark ended the day with a loss of 166 points. The relief rally in the first half of the day proved to be a dead cat bounce.
There was wide profit booking with analysts citing valuation concerns and global uncertainties as factors denting sentiment.
Sensex declined 0.21% to settle at 78,593, while the broader NSE Nifty dropped 0.26% to end at 23,992.
Among Sensex stocks, HDFC Bank, Bharti Airtel, SBI, ICICI Bank, Axis Bank, and Bajaj Finance were the main drags on the index. In contrast, L&T, Reliance Industries, HUL, and HCL Tech ended in positive territory.
Sector-wise, Nifty Financial Services and PSU Bank closed over 1% each. Nifty Auto, Healthcare, Consumer Durables, and Oil & Gas also ended in the red. In the broader market, Nifty Midacap100 and Nifty Smallcap100 fell 0.4% and 0.6%, respectively.
The fear gauge India VIX also ended 8% lower to 18.74.
Textile stocks like Gokaldas Exports, Century Enka and SP Apparels also closed 13-20% higher as investors believe that the Bangladesh crisis will boost textile exports from India.
The market capitalisation of all listed companies on BSE declined by Rs 1.57 lakh crore to Rs 440.27 lakh crore. The market breadth was skewed in favour of the bears. About 2,344 stocks declined, 1,592 gained, and 92 remained unchanged on the BSE.
Expert Views
"The domestic market tried to rebound mirroring the Asian markets. However, momentum was short-lived and closed below the threshold level of 24,000. Investors are watching the appreciating Yen, weak US economic data, and ris ..
Nonetheless, the market is looking forward to the decline of crude prices and potential rate cuts by the US Fed & RBI to mitigate the downturn risk," Nair added.
Aditya Gaggar, Director of Progressive Shares, said, "The near-term outlook for Nifty50 turned bearish unless it gives a convincing move above 24,400 while on the downside, 50DMA support i.e. 23,880 will be considered as immediate support."
Global Markets
The Nikkei's 10% rebound in Tokyo overnight delivered an initial sense of relief after the index's 12.4% drop on Monday — its biggest daily sell-off since the 1987 Black Monday crash.
S&P 500 futures were up by just 0.3%, having risen earlier by as much as 1.7%, while Nasdaq futures were up 0.2%, having gained as much as 2.4%.
Crude Oil
Oil prices pared gains in volatile trade on Tuesday as fears of an escalation in the Middle East conflict and a drop in production at Libya's largest Sharara oilfield raised the prospect of tight supplies.
However, buying was capped by a weak demand outlook in China, while a global market recovery from a sell-off on Monday provided support.
Brent crude futures were up 12 cents, or 0.16%, to $76.42 a barrel, while U.S. West Texas Intermediate crude futures were up 22 cents, or 0.3%, to $73.16. Both contracts gained over $1 a barrel earlier in the session.
Rupee ends at record low
The Indian rupee fell on Tuesday and closed at its weakest level on record, pressured by a decline in its Asian peers and strong dollar demand in the non-deliverable forwards market. The rupee hit an all-time low of 83.96 per U.S. dollar befo ..
Source Name : Economic Times