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Sensex Falls 350 Points From Day's High; Energy, Metal Stocks Lead Losses

Sensex Falls 350 Points From Day's High; Energy, Metal Stocks Lead Losses

Selling pressure in financial and energy stocks weighed on the markets

Domestic stock markets gave up early gains on Tuesday amid selling pressure in financial and energy stocks, as benchmark idnices Sensex and Nifty lost steam following four consecutive sessions of gain. The S&P BSE Sensex index slumped to as low as 36,271.09 in late morning deals, having started the day at the strongest level of the day at 36,660.35. The broader NSE Nifty 50 benchmark slid to as low as 10,689.70, after strengthening to as high as 10,803.60 compared to its previous close of 10,763.65. However, buying interest in IT and pharmaceutical shares kept the losses in check.

At 11:38 pm, the Sensex traded at 36,300.45, down 186.83 points - or 0.51 per cent - from its previous close, while the Nifty was down 60.25 points - or 0.56 per cent - at 10,703.40.

In the 50-scrip Nifty basket, 39 stocks traded lower at the time. Adani Ports, Bharat Petroleum, Power Grid, Bharti Infratel and Grasim, trading between 2.72 per cent and 3.69 per cent lower, were the top percentage laggards.

On the other hand, Bajaj Finance, Infosys, IndusInd Bank, Bajaj Finserv and Eicher Motors - up between 1.14 per cent and 3.01 per cent - were the top Nifty gainers.

Official data on industrial production and retail as well as wholesale inflation will be released this week. IT major Tata Consultancy Services (TCS) will kick off the earnings season by reporting its financial results for the April-June period.

Shares elsewhere in Asia moved lower as worries about a spike in COVID-19 cases in the US outweighed growing expectations of an economic rebound in China and a resurgent US services industry.

MSCI's broadest index of Asia Pacific shares outside Japan was last seen trading 0.28 per cent lower, while Japan's Nikkei 225 benchmark was down 0.58 per cent. 

While China's Shanghai Composite traded 1.52 per cent higher at the time, Hong Kong's Hang Seng and South Korea's KOSPI indices were down 0.60 per cent and 0.85 per cent respectively.

The E-Mini S&P 500 futures were down 0.57 per cent, indicating a negative start for US markets on Tuesday.

European shares registered strong gains in early trade, with the United Kingdom's FTSE benchmark last seen trading 2.09 per cent higher. France's CAC and Germany's DAX indices were up 1.49 per cent and 1.64 per cent.