Indian markets closed in the red on Tuesday after witnessing gains in the last two sessions. After a gap-up opening of around 93 points to trade above 19,200 levels, NSE Nifty lost around 145 points to touch an intraday low of 19,056 at 10.45 am.

During the rest of the session, Nifty attempted to break above yesterday’s closing mark of 19,140 multiple times, without a much success.

While the 30-share index S&P BSE Sensex settled 237.72 points or 0.37 per cent lower at 63,874.93, the broader NSE Nifty 50 fell 61.30 points or 0.32 per cent to 19,079.60.

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According to market observers, intensification of the West Asia conflict and the scheduled US Fed meeting have resulted in sustained FII outflows from the markets.

Top gainers, top losers

While SBI Life (3.30 per cent), Titan (2.49 per cent), HDFC Life (2.19 per cent), Kotak Mahindra Bank (1.08 per cent) and Asian Paints (1.08 per cent) were the top five gainers among the Nifty50 constituents, Sun Pharma (2.71 per cent), Mahindra and Mahindra (2.26 per cent), Eicher Motors (1.84 per cent), LTIMindtree (1.67 per cent) and ONGC (1.51 per cent) lost the most. 

In Asian markets, markets in Seoul, Shanghai and Hong Kong declined, while Tokyo markets ended the session with gains. 

While the European markets were trading in green, the US markets ended significantly higher on Monday. 

Global oil benchmark Brent crude climbed 0.93 per cent to $88.31 a barrel.

Market Depth

On BSE, out of the 3,760 stocks, 1,836 stocks advanced, while 1798 stocks declined on Tuesday. The remaining 126 stocks were unchanged at the end of the session, show data on BSE website.

Charts indicate further weakness

According to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, net FII outflows have been keeping the markets under pressure.

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“We may see a mixed trend in the markets in the near to medium term. On the daily charts, the Nifty has formed a bearish candle, indicating further weakness from the current levels. We are of the view that the market is likely to consolidate within the range of 18,980 to 19,220. However, below 18,980, traders may prefer to exit from long positions,” Chouhan added.

Fed’s commentary remains crucial

Vinod Nair, Head of Research at Geojit Financial Services, said though the US Fed is widely expected to keep rates unchanged, commentary on the future path will be an important factor that will influence the market direction.

“The main indices witnessed marginal losses, particularly led by IT stocks. Mid- and small-caps gained due to the recent moderation in valuations, and buy-in dip strategy of domestic investors on the hope of a pick-up in demand in the upcoming festive season,” Nair said.

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