The BSE Sensex erased all early gains to end 175 points lower in choppy trade on Tuesday, posting its fourth fall in five sessions due to widespread selling in auto, consumer, realty, oil and gas and banking stocks, amid weakening rupee and boiling crude oil prices.
The 30-share Sensex opened higher at 34,651.82 points but slipped into the negative zone to hit a low of 34,233.50 before ending at 34,299.47, recording a fall of 174.91 points, or 0.51%.
Similarly, the NSE Nifty after shuttling between 10,397.60 and 10,279.35 points, ended 47 points, or 0.45%, lower at 10,301.05.
“Volatility continued in the market in spite of which short-term investors are accumulating select beaten down stocks with an eye on upcoming quarter earnings,” said Vinod Nair, Head of Research, Geojit Financial Services.
However, negative sentiments from global market on concerns over a slowing world economy led by lingering trade war between the US and China dragged the market, he added.
According to a Nomura report, the recent market fall has to a large extent corrected the excess. However, it is still difficult to call a bottom on the valuation and further downside cannot be ruled out.
Market sentiment was also dampened on unabated foreign fund outflows and the International Monetary Fund (IMF) downgrading outlook for world economy to 3.7 growth on Tuesday.
The Indian currency collapsed to a new lifetime low of 74.27 in intra-day trade, raising concerns on the macroeconomic front.
Selling was more pronounced in consumer durables, auto, oil and gas, FMCG, realty, PSU and banking stocks that dragged the indices into the negative zone.
Among Sensex constituents, Tata Motors was the worst hit, plunging 13.40% to end at multi-year low of ₹184.25, after the company-owned Jaguar Land Rover (JLR) reported 12.3% decline in global sales in September.
Other laggards include Asian Paints falling 3.95%, Maruti Suzuki 3.07%, HUL 2.73%, Bharti Airtel 2.29%, Bajaj Auto 1.85%, ITC 1.81%, RIL 1.58%, ICICI Bank 1.50%, M&M 1.36%, SBI 1.26%, NTPC 1.22%, Axis Bank 0.67% and HDFC Bank 0.17%.
In contrast, Adani Ports emerged as the top gainer by rising 4.52%, followed by HDFC falling 2.59%.
Vedanta, Tata Steel, Coal india, Yes Bank, Sun Pharma, Wipro, TCS, L&T, Infosys, IndusInd Bank and Kotak Bank too showed strength, gaining up to 2.44%.
Shares of oil marketing companies such as HPCL, BPCL and IOC were down up to 4.20% as global crude oil prices again rose on reports of decline in crude export from Iran.
Sectorally, the BSE consumer durables index emerged worst performer by falling 3.91%, followed by auto at 2.62%, oil and gas 1.92%, FMCG 1.68%, PSU 1.19%, realty 1.06%, power 0.62%, bankex 0.47%, infrastructure 0.41%, capital goods 0.25%.
However, metal, healthcare, teck and IT indices managed to close in the positive zone by rising up to 1.01%.
A mixed trend at other Asian markets and a lower opening in the euro zone too triggered selling on the domestic bourses here.
Japan’s NIkkei fell 1.32%, Straight Time shed 0.49%, while Shanghai rose 0.17%.
In the euro zone, FTSE, CAC and DAX were little changed in their late morning deals.
