INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The BSE benchmark Sensex tanked over 1 per cent for a second straight session on Tuesday, as index heavyweights ITC, HDFC Bank,
Reliance Industries, ICICI Bank and HDFC dragged the 30-share index lower
Sensex closed the session 509.04 points, or 1.34 per cent lower at 37,413.13 with 6 constituents in the 30-share index managing to close in
The rupee, which had opened in the green zone, reversed course in the afternoon session, weighing heavily on stock market sentiment.
At
3.45 pm, the domestic currency was trading 18 paise or 0.25 per cent lower at 72.62, a fresh lifetime low.
Tata Steel emerged as the worst
index performer and closed the session 3.98 per cent lower at Rs 589.10.
The NSE benchmark Nifty shut shop below the 11,300 mark at
11,287.50, down 150.60 points or 1.32 points
In the 50-share index 44 constituents closed lower while 6 settled higher.
In the sectoral landscape, all the indices ended the day on a
negative note with FMCG counter witnessing the biggest fall in percentage terms.
It was followed by Nifty Realty, Nifty Metals, Nifty
Pharma, Nifty Auto and Nifty Bank index.
Nifty IT index lost the least on fall in the domestic unit rupee
The Nifty IT index closed the day at 15,993.15, down 0.70 per cent.
The bears continued to dominate, as the equity indices fell sharply for
a second straight session
A continued sharp fall in the rupee to a new record low, firm crude oil prices and weak global cues impacted the sentiment on the domestic
bourses and dragged the Nifty down to an intra-day low of 11,274 before it closed the session 1.3 per cent lower at 11,288 level
The broader market indices fell broadly in line with benchmark
Broad-based selling was witnessed across sectors with FMCG, consumer durables, metals, realty and healthcare being the top losers down
Globally, most Asian indices and European markets traded in the red-Jayant Manglik, President, Religare BrokingHere are five key factors
that caused the market fall:1
Rout in rupeeThe domestic unit again plunged to its new lifetime low against the US dollar in today's session
The rupee hit a low of 72.74 against the greenback despite opening with a gain of 15 paise.
2
Rising bond yield The 10-year bond yield spiked to 8.17 per cent on Tuesday amid fears of another rate hike by the Reserve Bank
When macroeconomic indicators turn weak, bond yields push higher, resulting in a drop in prices
Investors then tend to seek more returns on bonds to compensate for the risks involved.
3
Weakening macrosIndia's current account deficit widened to a four-quarter high as per the RBI data released on Friday
Economists said India’s CAD is expected to widen to 2.5-2.8 per cent of the GDP in the current fiscal due to higher oil prices that has
been accentuated by rupee depreciation.
This could put pressure on Indian equities market, said fund managers according to an ET
article.
Investors also remained edgy ahead of the CPI and IIP numbers that are due to be released on Wednesday and decided to remain
Breaish global setupThe weakness in global markets weighed on investor sentiment at home
Asian bourses were in the red for a ninth straight day as markets awaited action from US President Donald Trump after the expiry of a
deadline for public comment on additional tariffs on Chinese goods, Reuters reported.
China's Shanghai Composite index ended at its weakest
close in 31 months as investors took a cautious stance awaiting developments in international trade disputes.
5
Tech charts indicate bearish gripThe experts had said that for aggressive trades, a drop towards 11,390 level on Tuesday could be a shorting
Rajesh Palviya of Axis Securities said a decisive close below Nifty’s 20-day SMA could signal a short-term change of trend
“From its current level, the 11,400 level remains a crucial support for Nifty
Any violation of this level will trigger further downside towards 11,350 and 11,320 levels
On the upside, the 11,500 level will remain a key resistance
Daily strength indicator RSI continued to remain in the negative terrain, which supports the weakening trend,” Palviya had said on
