The key equity indices ended with steep losses on Tuesday, snapping their three-day rising streak. The Nifty managed to close near the 17,750 level after hitting an intraday low of 17,576.10 in mid afternoon trade. PSU banks rallied while IT shares corrected.
Global shares were under pressure amid a stronger dollar and rising U.S. Treasury yields. Investors also fretted over China Evergrande Group's debt crisis and a widening power shortage in China.
The barometer index, the S&P BSE Sensex, declined 410.28 points or 0.68% to close at 59,667.60. The Nifty 50 index fell 106.50 points or 0.60% to close at 17748.60.
Tech Mahindra (down 3.41%), Bajaj Finance (down 3.22%), Infosys (down 2%), ICICI Bank (down 1.77%) and HDFC (down 1.30%) were major drags.
The Sensex rose 1.95% while the Nifty jumped 1.76% in the past three sessions.
The sell off was wide spread. The S&P BSE Mid-Cap index fell 0.71% while the S&P BSE Small-Cap index fell 0.62%.
The market breadth was negative. On the BSE, 1,502 shares rose and 1,755 shares fell. A total of 168 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.67% to 18.54.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 232,316,272 with 4,756,251 deaths. India reported 292,206 active cases of COVID-19 infection and 447,373 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
In the last 24 hours, India reported 18,795 new cases. The country posted less than 20,000 cases after 201 days. Active cases account for less than 1% of total cases, currently at 0.87%, lowest since March 2020. India's active caseload stands at 2,92,206, lowest in 192 days.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee fell to 74.06 from its previous closing of 73.8375.
MCX Gold futures for 5 October 2021 settlement fell 0.27% to Rs 45,945.
The yield on India's 10-year benchmark federal paper (06.10 GS 2031) rose to 6.2281%, compared with 6.209% at close in the previous trading session.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.25% to 93.62.
The yield on the benchmark 10-year U.S. Treasury note topped 1.5%, lifted by optimism about the economic outlook and the prospects of tighter monetary policy.
In the commodities market, Brent crude for November 2021 settlement rose 69 cents or 0.87% to $80.22 a barrel.
Global Markets:
US Dow Jones index futures was down 166 points, indicating a weak opening in the US market today.
Shares in Europe fell across the board while most Asian stocks declined on Tuesday, as global investors monitored a spike in U.S. bond yields and Chinese growth concerns.
China is in the grip of a power crunch as a shortage of coal supplies, toughening emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread curbs on usage.
Meanwhile, investors are still waiting to find out what will happen to troubled Chinese conglomerate Evergrande and its enormous mountain of debt.
European markets continued to digest the fallout of the German election on Tuesday after the vote on Sunday resulted in more uncertainty for the country. The center-left Social Democratic Party (SPD) gained the largest share of the vote with 25.7% by a slim margin, with Angela Merkel's right-leaning bloc of the Christian Democratic Union and Christian Social Union gaining 24.1% of the vote.
US stocks closed mixed Friday as the market fell back under pressure amid concerns relating to China, COVID-19 and U.S. politics.
Eyes will also be on U.S. fiscal policy with the House of Representatives due to vote on a $1 trillion infrastructure bill this week, while a September 30 deadline on funding federal agencies could force the second partial government shutdown in three years.
Buzzing Indian Segment:
The Nifty PSU Bank rose 1.24% to 2,398.30. It has risen 1.73% in two sessions.
Indian Bank (up 4.80%), Canara Bank (up 2.85%), PNB (up 2.22%), Bank of Baroda (up 1.73%), Indian Overseas Bank (up 1.50%), Punjab & Sind Bank (up 1.49%), Union Bank of India (up 1.30%), Jammu & Kashmir Bank (up 1.24%), Central Bank of India (up 1.21%) and Bank of Maharashtra (up 0.83%) jumped.
Bank of India (down 0.19%) and State Bank of India (down 0.44%) declined.
Stocks in Spotlight:
Bharti Airtel fell 3.68%. CRISIL Ratings has upgraded its long term rating on the bank facilities and debt programme of Bharti Airtel (BAL) to'CRISIL AA+/Stable' from 'CRISIL AA/Stable', and has reaffirmed the 'CRISIL A1+' rating on the commercial paper programme. CRISIL Ratings has withdrawn its rating on Rs 1,500 crore non-convertible debentures (NCDs) of BAL, as they have been fully repaid. CRISIL Ratings has received confirmation of no dues against these NCDs from the debenture trustee. The rating action is in line with the CRISIL Ratings policy on withdrawal of rating on NCDs.
Gujarat State Fertilizers & Chemicals (GSFC) jumped 3.23% after the Central Board of Indirect Taxes and Customs (CBIC) proposed anti-dumping duty for caprolactam.
Websol Energy System jumped 9.46% after the company's solar module received approval from the Ministry of New and Renewable Energy (MNRE). The company has also received approval from Bureau of Indian Standards (BIS) and IEC 61215.
NTPC rose 3.94% after the company won 1.9 gigawatt (GW) in the auction of CPSU Scheme-II, Tranche-III of 5 GW.
Bharat Heavy Electricals (BHEL) surged 6.41% after the company won an order from Goa Shipyard for supplying upgraded super rapid gun mount (SRGM).
Anupam Rasayan India rose 1.46% after the company announced the signing of a Letter of Intent (LoI) worth Rs 145 crore with existing long-term European multinational customer. The company will enter into a long-term contract for next three years to supply this life science related speciality chemical product.
Whirlpool of India rose 0.91% after the company said it entered into agreements to acquire majority stake of Elica PB India. Whirlpool India initially acquired a 49% equity interest in Elica PB India in 2018. It will now acquire an additional 38% equity interest for $57 million to bring its total equity ownership to about 87%.
Sun Pharmaceutical Industries gained 2.19%. The drug company announced the launch of a novel formulation in cough management - Chericof 12 (dextromethorphan hydrobromide 30 mg and chlorpheniramine maleate 4 mg) in India.
Paisalo Digital gained 1.42% after the State Bank of India signed a service level agreement with the company for engagement as national business correspondent of the bank.
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