Sensex closes 300 points lower, Nifty falls below 10,700 on negative global cues
The market snapped its three-day rising streak on heavy selling by market participants, in line with a global selloff despite strengthening rupee and easing crude prices. While the Sensex shed 300 points to 35,474, the Nifty fell 107 points to 10,656 level.
The Sensex had risen 633 points in the last two sessions on the back of increased foreign fund inflows.
YES Bank (6.10%), Tata Steel (3.21%) and Vedanta (2.89%) were the top Sensex losers. Of 30 Sensex stocks, 26 closed lower.
The YES Bank stock fell in trade today after independent director Rentala Chandrashekhar put in his papers on Monday. The large cap stock was the top loser on Sensex and Nifty today. On Sensex, the stock fell up to 6.48% to 191.75 compared to the previous close of 205.05.
BSE mid cap and small cap indices fell 1.02% and 0.92%, respectively.
Among BSE sectoral indices, metal index was the top loser falling 2.82% or 358 points to 12,354 level.
Other indices which lost were BSE IT (1.74%) and bankex (0.78%).
IT stocks fell after rupee moved 27 paise higher to 71.28 level intra day. TCS, Infosys and Wipro stocks fell up to 2.59 per cent in trade today. The currency closed 20 paise higher at 71.45 compared to the previous close of 71.65 after the outcome from Monday's RBI board's meet removed uncertainty over a growing rift over policy decisions between the government and the central bank.
VK Sharma, Head PCG & Capital Markets Group at HDFC Securities said, "With the appreciation of 20 paise further, rupee continued to rise for 6th straight session against the dollar, putting it on course for the longest winning run in 13 months. Rupee made a day's high at 71.28, the highest levels since September 4. Rupee also outperformed the other Asian currencies during today's trade. India's rupee reacted positively after the central bank and the government signaled a truce over contentious issues like reserves and liquidity.
RBI is scheduled to inject Rs 8,000 crore worth of liquidity into the system through open market operations on November 22.
The Indian currency markets will remain close tomorrow on account of Id-E-Milad. "
On the Indian stock market, VK Sharma said, "Indian markets also fell one percent in line with weak international cues. All the sector specific indexes closed in red and none could withstand the incessant selling. Metal stocks were particularly weak as fears of slowing growth in Chinese economy came to fore. Overall breadth of the markets were quite negative."
Market breadth was negative with 829 stocks closing higher compared to 1762 falling on the BSE. 150 stocks were unchanged.
Besides, profit-booking in recent gainers too fuelled the downward trend.
According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, European indices opened lower as investors continued to monitor developments on Brexit.
"Technology companies had been leading the charge in the US and concerns about slowing growth and regulatory overhang, along with concerns around energy sector profitability, alongside rising interest rates led to the sell off in the US," he said.
Markets are reacting to slowing US economic growth and all eyes remain focused on commentary out of the Fed, he added.
Asian stocks slid Tuesday after tech losses dragged down Wall Street and Nissan's chairman was arrested on financial charges.
In early trading, Germany's DAX index lost 0.8 percent to 11,156.08 points and France's CAC 40 shed 0.7 percent to 4,951.75. London's FTSE 100 retreated 0.4 percent to 6,969.74. On Monday, the DAX dropped 0.9 percent, the CAC gave up 0.8 percent and the FTSE 100 slipped 0.2 percent. Wall Street looked set for a lower opening, with the future for the benchmark Standard & Poor's 500 index off 0.6 percent and that for the Dow Jones Industrial Average down 0.4 percent.
The Shanghai Composite Index fell 2.1 percent to 2.645.88 and Tokyo's Nikkei 225 lost 1.1 percent to 21,583.12. Hong Kong's Hang Seng shed 2 percent to 25,840.34 and Seoul's Kospi retreated 0.9 percent to 2,082.58. Sydney's S&P-ASX 200 was 0.4 percent lower at 5,671.80 and Sensex declined 0.6 percent to 35,559.08. Benchmarks in Taiwan, New Zealand and Southeast Asia retreated.