Benchmark indices ended over half a per cent lower on Tuesday amid volatility.

Market opened on a negative note, tracking weak global cues and slipped further in the first half by around one per cent, dragged by IT and realty stocks. It managed to recover slightly during the closing hours.

The volatility index ended 2.67 per cent higher at 18.54.

The BSE Sensex closed at 59,667.60, down 410.28 points or 0.68 per cent. It hit an intraday high of 60,288.44 and a low of 59,045.53. The Nifty 50 closed at 17,748.60, down 106.50 points or 0.6 per cent. It hit an intraday high of 17,912.85 and a low of 17,576.10.

Decliners outnumber

The market breadth remained negative with as many as 1,755 stocks declining on the BSE, as compared to 1,502 stocks that advanced while 168 remained unchanged. Furthermore, 361 stocks hit the upper circuit as compared to the 181 stocks that were locked in the lower circuit.

Besides, 215 stocks touched a 52-week high level and 25 touched a 52-week low.

Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “The market is witnessing a correction after a vertical rise near to the psychological levels of 18,000 and 60,000 for Nifty and Sensex respectively. Brent crude is above $80 per barrel, the dollar index is above 93.5, and the US 10-year bond yield is near to 1.5 mark.”

“These are the multiple triggers that are pushing bulls on the back foot after a long period of the party. Our market was outperforming most of the global peers for a long time but rising Crudeoil prices may lead to some mean reversion. India VIX is also crossing its 200-DMA which is also indicating a sign of a short-term correction. Furthermore, lack of FIIs buying is visible post-US Fed meeting,” said Meena.

According to Meena, the overall trend may remain bullish but the market is likely to witness the first meaningful correction in a long time.

“This time correction could be a little deeper but that would be an opportunity to enter into the current bull run because this bull run may continue for the next 2-3 years where we may see 5-15% intermediate corrections,” said Meena.

Powergrid, Coal India, NTPC, Sun Pharma and IOC were the top gainers on the Nifty 50 while Bharti Airtel, Tech Mahindra, Bajaj Finance, Divi’s Lab and Bajaj Finserv were the top laggards.

S Ranganathan, Head of Research at LKP securities, said, "Highly volatile trade witnessed today with significant swings on either side led by the IT & Oil & Gas Index. The PSE Index put up a stellar show today rising over 3 per cent with power stocks making a smart up move. Despite the smart pullback from the lows of the day, declines were higher than advances in the broader market."

Oil & Gas, PSU Bank in focus

On the sectoral front, a majority of indices were in the red with IT and Realty witnessing increased pressure while Oil & Gas and PSU Bank stocks gained focus. Metals and pharma also gained.

Nifty IT was down 2.20 per cent while Nifty Realty was down 3.02 per cent.

Meanwhile Nifty Oil & Gas was up 1.33 per cent while Nifty PSU Bank was up 1.24 per cent. Nifty Metal and Nifty Pharma ended 0.55 per cent and 0.11 per cent higher, respectively.

Broader indices

Broader indices also closed in the red.

Nifty Midcap 50 was down 0.56 per cent while Nifty Smallcap 50 was down 0.68 per cent. The S&P BSE Midcap was down 0.71 per cent while the S&P BSE Smallcap was down 0.62.