Benchmark indices closed in the red for the third consecutive session on Tuesday.

Markets opened on a weak note, tracking global cues. Indices extended losses to close lower, dragged by oil and gas, financials, auto and FMCG stocks.

The BSE Sensex closed at 52,693.57, down 153.13 points or 0.29 per cent. It recorded an intraday high of 53,095.32 and a low of 52,459.48. The Nifty 50 closed at 15,732.10, down 42.30 points or 0.27 per cent. It recorded an intraday high of 15,858.00 and a low of 15,659.45.

Breadth favours decliners

The market breadth remained in favour of the decliners with 1,782 stocks declining on the BSE as against 1,532 that advanced while 135 remained unchanged. Furthermore, 14 stocks hit the upper circuit as compared to the three stocks that were locked in the lower circuit. Besides, 50 stocks touched a 52-week high and 191 touched a 52-week low.

According to Vinod Nair, Head of Research at Geojit Financial Services, “Domestic market restrained from heavy selloff as CPI [consumer price index] data moderated on a month-on-month basis and this had a calming effect amidst global volatility.”

“However, elevated WPI [wholesale price index] data continued to dominate the broad market, which is cautious, awaiting tomorrow’s outcome of [US] Fed policy. Earlier, the global market was anticipating a 50 bps hike but is now worried about a higher rate hike due to persistent US inflation,” added Nair. 

India’s wholesale price-based inflation rose to a record high of 15.88 per cent in May on rising prices of food items and crude oil. 

Deepak Jasani, Head of Retail Research, HDFC Securities, said, “Nifty ended in the negative on June 14 for the third consecutive session after swinging between gains and losses through the day. Asian shares slid sharply on Tuesday after Wall Street hit a confirmed bear market milestone on fears aggressive US interest rate hikes would push the world’s largest economy into recession.”

“World shares gave back intra-day gains post a volatile Dow Futures, as US Treasury yields steadied at multi-year highs following the worst selloff in years. Markets globally could remain nervous till the US Fed meet on June 15 gets out of the way,” added Jasani. 

NTPC, Bharti Airtel, Divi’s Lab, M&M and Cipla were the top gainers on the Nifty 50, while Bajaj Auto, IndusInd Bank, ONGC, Hindalco and Tech Mahindra were the top losers. 

Realty, metals in focus

On the sectoral front, while oil and gas, financials, auto and FMCG dragged, metal, realty, pharma and healthcare stocks gained.

Nifty Oil & Gas was down over 1 per cent at closing. Nifty Bank and Nifty Financial Services were down 0.28 per cent and 0.42 per cent, respectively. Nifty PSU Bank was down 0.42 per cent while Nifty Private Bank was down 0.45 per cent. Nifty Auto closed 0.55 per cent lower while Nifty FMCG was down 0.21 per cent.

Meanwhile, Nifty Metal was up 0.37 per cent while Nifty Realty was up 0.81 per cent. Nifty Pharma and Nifty Healthcare closed 0.22 per cent and 0.33 per cent higher, respectively. 

Broader indices

Broader market also remained under pressure.

Nifty Midcap 50 was down 0.14 per cent while Nifty Smallcap 50 was down 0.71 per cent. The S&P BSE Midcap was down 0.16 per cent while the S&P BSE Smallcap was down 0.40 per cent. 

The volatility index softened 2.13 per cent to 21.89.