Massive outflow of foreign funds, along with profit booking and negative global cues depressed the Indian equity markets on Tuesday.
Besides -- a day after Cyrus P. Mistry was removed as Chairman of Tata Sons, scrips of Tata Group's many subsidiaries pared some of their initial losses during the trade session but still ended in the red.
However, positive European indices and value buying at lower levels aided in arresting the falling trend.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) fell by 17.65 points or 0.20 per cent to 8,691.30 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,159.09 points, closed at 28,091.42 points -- down 87.66 points or 0.31 per cent from the previous close at 28,179.08 points.
The Sensex touched a high of 28,211.41 points and a low of 28,013.69 points during the intra-day trade.
The BSE market breadth was firmly in favour of the bears -- with 1,480 declines and 1,311 advances.
On Monday, the equity markets closed in the green due to positive global cues, bargain hunting and a strengthened rupee.
The barometer index had gained 101.90 points or 0.36 per cent to close at 28,179.08 points, while the NSE Nifty inched up by 15.90 points or 0.18 per cent to 8,708.95 points.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, CNX Nifty traded with sideways sentiments throughout the session due to profit booking.
"Bank Nifty also traded with sideways sentiments and faced resistance at higher levels due to profit booking. Firm USD/INR futures prices pressurised the price movement of Nifty at higher levels," Desai said.
"IT, banking, auto and FMCG stocks faced profit booking at higher levels. However, pharma stocks recovered well from day's low in second half of the session. Oil-gas, textile, media-entertainment stocks witnessed good buying sentiments."
Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services said: "Broadly negative Asian markets and an appreciation in the US dollar, as well as lower than expected quarterly results lent a weak bias, while state owned banks were seen dragging their feet after FM's comments yesterday on NPA."
"However, with more private sector banks scheduled to come out with numbers and value buying at lower levels arrested the falls."
In terms of investments, provisional data with the stock exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 606.34 crore, whereas the domestic institutional investors (DIIs) invested Rs 389.11 crore.
Major Sensex gainers during Tuesday's trade were: Adani Ports, up 9.43 per cent at Rs 312.60; Dr.Reddy's Lab, up 3.59 per cent at Rs 3,200.45; ICICI Bank, up 1.60 per cent at Rs 289.10; Axis Bank, up 1.49 per cent at Rs 529.05; and Bharti Airtel, up 1.48 per cent at Rs 311.05.
Major Sensex losers were: Tata Steel, down 2.51 per cent at Rs 415.50; Mahindra and Mahindra (M&M), down 2.51 per cent at Rs 1,305.85; Gail, down 2.02 per cent at Rs 434.90; Hindustan Unilever, down 2.00 per cent at Rs 832.05; and ONGC, down 1.30 per cent at Rs 289.10.
--IANS
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