The two key equity benchmarks, Sensex and Nifty, on Tuesday ended lower by 1 per cent ahead of the US Fed’s interest rate decision scheduled on Wednesday. The S&P BSE Sensex plunged 736 points to close at 72,012. On the other hand, the NSE Nifty50 settled at 21,817, down 238 points.
On the 30-share Sensex platform, TCS declined 4 per cent after Tata Sons likely sold about 0.6 per cent stake in the firm. Nestle, IndusInd Bank, Wipro, HCL, Infosys were among the other losers. On the flip side, Bajaj Finance, Kotak Bank, ICICI Bank, Airtel, HDFC Bank, Bajaj Finserv emerged gainers.
In the broader markets, the BSE Midcap and Smallcap indices dropped 1.36 per cent and 1 per cent, respectively.
Sectorally, all the indices closed in the red, with Healthcare, IT, FMCG, Capital Goods, Oil & Gas, Power segments fell 1-2 per cent.
In the previous session on Monday, the BSE Sensex closed 105 points up at 72,748, while the NSE Nifty50 ended at 22,056, up 32 points.
Vinod Nair, Head of Research, Geojit Financial Services said, “Following the BoJ's decision to hike interest rates for the first time in 17 years, the Asian peers’ mood turned sour, which pulled the Indian market to continue its recent pessimism.” The correction in the domestic market has also been triggered by concerns over premium valuations and the delay of rate cuts by the US Fed due to higher-than-expected inflation, which is evident from the upward trend in the dollar index, he added.
On the BSE, market activity saw 2,583 stocks decline, 1,234 stocks advance, and 111 stocks remain unchanged. Additionally, 364 stocks hit their lower circuit limit, while 235 companies reached their upper circuit level.
Across Asian markets, Seoul, Shanghai, and Hong Kong experienced declines, whereas Tokyo closed with gains. European markets showed modest gains during trading. On Monday, Wall Street concluded on a positive note.
According to exchange data, Foreign Institutional Investors (FIIs) divested equities valued at Rs 2,051.09 crore on Monday.
Brent crude, the global oil benchmark, saw a 0.40 per cent decline, settling at $86.54 per barrel.
Meanwhile, the Indian rupee weakened by 12 paise, reaching 83.02 (provisional) against the US dollar on Tuesday. This decline was attributed to significant sell-offs in domestic equities and continuous foreign capital outflows.
Forex traders noted that a strengthening US dollar against major currencies worldwide contributed to the depreciation of the rupee.
In the interbank foreign exchange market, the rupee opened at 82.94, touching an intraday low of 83.05 and a high of 82.93. Ultimately, it settled at 83.02 (provisional) against the dollar, marking a 12 paise loss from its previous close.
On Monday, the rupee had slipped by 4 paise to close at 82.90 against the US dollar.