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The Sensex and the Nifty ended the session marginally in the red amid weak global cues.
The 30-share BSE index Sensex ended at 26,344.33, down 34.74 points and the 50-share NSE index Nifty ended at 7,864, down 20.25 points.
Both the Sensex and the Nifty trimmed their initial losses after the data released today showed WPI inflation came in at 2.38 per cent, much lower than 3.74 per cent recorded in the previous month. But heavy selling in realty stocks dampened the domestic sentiment.
Realty stocks plunged over 9 per cent, after SEBI barred DLF from tapping the capital markets for three years for “active and deliberate suppression” of material information at the time of its IPO.
DLF shares tanked by over 28 per cent — probably its biggest one-day fall — on the back of SEBI imposing a three-year ban on the company and its top executives from securities market.
Among BSE sectoral indices, realty index plunged the most by 9.24 per cent, followed by IT 0.77 per cent, consumer durables 0.63 per cent and oil & gas 0.54 per cent. On the other hand, power index was up 0.57 per cent, India infrastructure index 0.53 per cent and banking 0.52 per cent.
BHEL, Axis Bank, Bajaj Auto, Tata Power and Bharti Airtel were the major Sensex gainers, while the major losers were Tata Motors, HDFC, ONGC, ITC and HDFC Bank.
The benchmark BSE Sensex rose over 123 points in early trade after the domestic sentiment was buoyed on the back of strong second quarter earnings posted by RIL and easing retail inflation that dropped to 6.46 per cent in September.
Shares of RIL rose 0.34 per cent to Rs 961.10 after the company posted 1.7 per cent rise in its second quarter net profit to Rs 5,972 crore.
Meanwhile, the retail inflation dropped to 6.46 per cent in September due to falling prices of fruits and vegetables, the lowest since India started computing Consumer Price Index (CPI) in January 2012.
According to the provisional data released by the stock exchanges, foreign portfolio investors (FPIs) sold shares worth Rs 671.06 crore yesterday.
Global markets
Deepening worries over the health of the global economy dragged shares in Europe and Japan lower on Tuesday, while the dollar rebounded against the euro and yen from big declines the previous day.
With figures showing a slump in demand growth, oil prices fell. Brent crude dropped to just above $88 a barrel.
European shares opened lower. The pan-European FTSEurofirst 300 index was down 0.2 per cent. The standout loser on European markets was British luxury handbag maker Mulberry, down 23 per cent after warning full-year pre-tax profit would be significantly below expectations.
In Tokyo, Japan's Nikkei share average fell 2.4 per cent, hitting the lows last seen in mid-August, as traders got back to their desks following a holiday on Monday.
Other Asian shares fared better. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent as bargain-hunters stepped in after a fall of more than 10 per cent since early September.
Fed bond-buying programme
Investors have been cutting their exposure to riskier assets on worries about the US Federal Reserve ending its bond-buying stimulus later this month, mounting risks of recession in the euro zone and a floundering Japanese economy.
Instead, they have been turning to low-risk government bonds, the Japanese yen and gold.
"There remains a palpable concern amongst investors that the worst may still be to come. The market is aware that tapering is due to end later this month and they are also aware that that means the next move for the Federal Reserve is to hike interest rates," said Angus Campbell, senior analyst at FxPro in London.
"At a time when global growth is fast becoming a worry, the combination of the two does not sit well with investors."
US shares slid on Monday. The S&P 500 index fell 1.7 per cent to rack up its biggest three-day slide since November 2011. The VIX volatility index - the so-called fear gauge - rose to 24.6 per cent, its highest since June 2012 at the height of the euro zone crisis.
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