Comments
Shares fell as much as 2 per cent on Tuesday on worries about capital outflows as US bond yields surged and the dollar strengthened, and as heavyweight Tata Motors, mired in a corporate power struggle, plunged after reporting weak earnings.
The Indian rupee fell against the dollar, hitting a level not seen since June 29, when it weakened in the aftermath of Britain's vote to leave the European Union. The greenback strengthened on expectations that President-elect Donald Trump's policies could boost inflation and guide US interest rates higher.
In India, sentiment continued to be weighed down by the government's move last week to withdraw higher-denomination bank notes and slow replenishment in new bills.
“As a whole, the decline in markets have more to do with global factors like higher yields and a stronger dollar,” said Neeraj Dewan, director at Quantum Securities, adding that India's action on bank notes was also impacting the market.
The broader NSE index finished 2.26 per cent or 187.85 points lower at 8108.45.
The benchmark BSE index declined 1.92 per cent at 26,304.63.
Markets were closed on Monday for a public holiday.
Tata Motors shares slumped as much as 9.3 per cent, hitting its lowest since July 7, after second-quarter profit missed estimates by a wide margin due to a weak performance at its Jaguar Land Rover unit.
Tata Motors was a major drag on the Nifty Auto index, which fell as much as 5.15 per cent to its lowest since June 29.
Meanwhile, key banking stocks slumped, with ICICI Bank falling 2.08 per cent and Axis Bank down 3.75 per cent.
But Bank of Baroda rose 8.3 percent, hitting its highest since September 8, after saying its September-quarter profit rose more than fourfold.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 1493.27 crs last Friday, as per provisional data released by the stock exchanges.
A mixed trend at other Asian markets too influenced the trading sentiment.
The US stocks closed little changed yesterday, after rising dramatically the week before and a decline in the technology sector offset a steep rise in financial stocks as investors bet on higher interest rates. The Dow Jones Industrial Average settled at another record closing high.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.