Mumbai, Negative global cues, along with a depreciating rupee and lower crude oil prices, depressed the Indian equity markets during the mid-afternoon trade session on Tuesday.
Both the key indices traded with losses of more than one per cent each, as heavy selling pressure was witnessed in automobile, consumer durables and banking stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) plunged by 132.80 points or 1.60 per cent to 8,163.50 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,809.61 points, traded at 26,506.77 points (1.30 p.m.) — down 312.05 points or 1.16 per cent from the previous close at 26,818.82 points.
The Sensex has so far touched a high of 27,809.61 points and a low of 26,317.89 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bears — with 2,256 declines and 304 advances.
On November 11, the Indian equity markets had plunged to their lowest levels in around four months, as heavy selling pressure forced the key indices lower by 2.5 per cent each.
The barometer index had declined by 698.86 points or 2.54 per cent, while the NSE Nifty receded by 229.45 points or 2.69 per cent.
Initially on Tuesday, the benchmark indices opened on a negative note in sync with broadly negative Asian markets.
The equity markets have not been able to recover from the last week’s huge falls, after investors’ sentiments were eroded by the surprise victory of Republican Donald Trump in the November 8 US Presidential election, along with a sudden move by the government to demonetise Rs 500 and Rs 1,000 currency notes.
Besides, the weakening of the rupee on the back of strong dollar, and lower crude oil prices also added to the downward trajectory.
On the domestic front, the data on the wholesale price index (WPI) released by the Commerce and Industry Ministry showed that India’s annual rate of inflation based on wholesale prices fell marginally to 3.39 per cent for October from 3.57 per cent for the month before.
“Indian markets are facing a negative trend as they have not been able to recover from the falls of the previous week. Global cues were largely negative, with the Asian markets mostly in the red due to a strength in the dollar,” Astha Jain, Senior Research Analyst at Hem Securities, told IANS.
“Indian markets witnessed a sharp rise in the USDINR as it opened 40 paise up at 67.75 on Monday from its previous close at 67.35 in the futures market on Friday. Lower crude oil prices also added to the downward trend.”
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty witnessed some short covering from lower levels.
“IT stocks witnessed good recovery from lower levels due to buying support, while banking, pharma, auto and oil-gas stocks traded lower on selling pressure,” Desai said.
“Textile, aviation, media-entertainment, FMCG, cement and power stocks also traded down on selling pressure. Firm USD/INR futures prices pressurised the price movement of Indian equity markets.”