Sensex and Nifty — the benchmark indices of the domestic equity market — snapped their six-day gaining streak and closed lower on Tuesday tracking weakness in Asian peers, a surge in crude oil prices and heavy selling pressure in most financials, auto, FMCG and realty stocks. According to market observers, caution prevailed ahead of the outcome of the Reserve Bank of India’s (RBI) monetary policy meeting tomorrow.
The BSE Sensex closed 106.69 points or 0.29% lower at 36,134.31 points. Sun Pharma, M&M, HDFC, SBI, NTPC and InduInd Bank were the top Sensex losers today. On the National Stock Exchange, the Nifty closed Tuesday’s trade 14.25 points or 0.13% lower at 10,869.50 points. Bank Nifty ended lower by 0.61%. BPCL, ONGC, UPL, Indiabulls Housing Finance and IOC were the top gainers on the Nifty, while Sun Pharma, M&M, Grasim, HDFC and SBI were the top losers.
Globally, deflating hopes of a swift resolution to the Sino-U.S. trade war knocked world stocks off three-week highs on Tuesday, while growing fears the U.S economy could be headed for recession sooner than expected weighed on the dollar, said a Reuters report. Following declines on Asian bourses, where Japan’s Nikkei stock index closed 2.4% lower, the mood was sombre in Europe with the wider blue-chip index slipping 0.3%. Frankfurt’s DAX and Paris’ CAC 40 fell 0.6% while MSCI’s index of world stocks declined 0.1%.