Ahead of inflation data and the US Fed Policy decision, Indian equity indices erased early gains and closed in the red on Tuesday, dragged by index heavyweights HDFC Bank, Reliance Industries, and Infosys.
The broader NSE Nifty dropped 90 points or 0.43% to end at 20,906. The 30-share BSE benchmark Sensex declined 377 points or 0.54% to settle at 69,551.
India’s retail inflation data is due at 5:30 p.m. IST.
Among the Sensex stocks, Sun Pharma IndusInd Ban, Maruti, Titan, and Reliance Industries closed in the red, while UltraTech Cement, JSW Steel, Axis Bank, TCS, and Wipro closed in the green.
Yes Bank closed 5% higher amid reports that the private lender is looking for buyers for its Rs 4,200 crore corporate and retail distressed loan book.
Jammu & Kashmir Bank closed 7% higher after the private lender launched a Qualified Institutional Placement (QIP) to raise Rs 750 crore.
From the sectoral front, Nifty Realty, Consumer Durables, and Oil & Gas fell over 1% each. Nifty Bank closed 0.46% lower, led by IndusInd Bank and Kotak Bank. Nifty Auto, Financial Services, FMCG, IT, and Pharma also closed in the red.
In the broader market, Nifty Midcap100 fell 0.4%, while Nifty Smallcap100 ended flat.
The market capitalisation of all listed companies on BSE declined by Rs 1.29 lakh crore to Rs 349.8 lakh crore.
The market breadth was skewed in the favour of the bears. About 2,040 stocks declined, 1,751 gained, and 114 remained unchanged on the BSE.
Experts Take
Following the recent impressive surge, the Nifty50 has undergone a consolidation phase today due to anticipated elevated November inflation in India, driven by rising food prices, which may potentially delay RBI policy cuts, said Vinod Nair, Head of Research at Geojit Financial Services.
In contrast, the US inflation outlook remains stable, which could influence the upcoming US Fed policy, Nair said.
Aditya Gaggar, Director of Progressive Shares, said, “The Index breached its strong support level and made a bearish engulfing pattern at the record levels which suggests a short-term top has been made and a minor correction (profit-taking) can be anticipated. The immediate hurdle stands at 21,020 while the downside is protected at 20,760.”
Global Markets
Global stocks rose on Tuesday ahead of US inflation figures that could set the tone for trading in a week filled with central bank meetings.
The MSCI All-World index, which is trading around four-month highs, was 0.2%. In Europe, the STOXX 600 held in positive territory, while US index futures rose 0.1-0.2%.
Oil Prices Rise
Oil rose on Tuesday as an attack by the Iran-aligned Houthis on a chemical tanker escalated geopolitical tension in the Middle East, though concerns over excess supply and slowing demand kept a lid on gains.
Brent crude futures for February rose 21 cents, or 0.3%, to $76.24 a barrel, while US West Texas Intermediate crude futures for January delivery gained 27 cents, or 0.4%, to $71.59.
Rupee vs Dollar
The Indian rupee ended little changed on Tuesday and hovered in a tight range tracking subdued moves in its Asian peers as markets await a key US inflation report.
The rupee closed at 83.3875 against the US dollar, barely changed from its close at 83.3925 in the previous session. The unit hovered between 83.36 and 83.39 on Tuesday.
(With inputs from agencies)
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
