On the 30-share Sensex, shares of Trent, Reliance Industries, ITC, Kotak Mahindra Bank and InterGlobe Aviation led the decline, falling between 2% and 9% and putting most pressure on the benchmark.HDFC Bank and Reliance Industries, the two heaviest constituents of the index, fell 1.5% and 4.3% respectively, widening losses on the benchmarks.
Reliance’s decline followed the company’s statement that it does not expect deliveries of Russian crude in January, after US President Donald Trump warned that Washington could raise tariffs on India over its oil purchases.
ICICI Bank climbed 2.9%, helping the financial index rise 0.3%, as investors bet on an improvement in credit growth and sector earnings in the December quarter.
Shares of clothing retailer Trent fell 8.6% on the day as concerns about increasing competition in the retail segment weighed on sentiment.
Expert views
Technically, after an early morning intraday rally, the market again recorded profit booking at higher levels, said Shrikant Chouhan, head of equity research at Kotak Securities, adding that profit booking continued at higher levels today.
“We believe that the intraday market formation is still on the weaker side, but another sell-off is possible only after the break of 26,100/84800. Below this level, the market could slip towards 26,000-25,950/84500-84350. On the other hand, 26,250/85300 would be the immediate resistance zone for the bulls. Above that, the market could bounce back to 26,350-26,380/85500-85700,” Chouhan said.
Global markets
Asian shares pushed deeper into record territory on Tuesday, picking up momentum from Wall Street, where gains in energy and financial stocks lifted the Dow Jones Industrial Average to a record high.
MSCI’s broadest index of Asia-Pacific shares rose 1.1% to a new peak, led by Japanese shares, while the Topix rose 1.6% to a record close. Taiwan’s Taiex rose 1% and South Korea’s Kospi gained 0.7%, with both benchmarks also posting new highs.
Markets in Greater China joined the rally. Hong Kong’s Hang Seng climbed 1.8%, while blue chip stocks on the mainland rose 1.2%.
In Europe, Euro Stoxx 50 futures were 0.2% higher after the Stoxx 600 closed at a record on Monday. U.S. stock futures were little changed but firm, with S&P 500 futures up 0.1% after a 0.6% rise in the cash index overnight, partly supported by a more than 5% rise in Chevron shares.
Rough impact
Oil prices rose on Tuesday as investors balanced expectations of ample global supply this year with new uncertainty over Venezuelan crude production following the US capture of President Nicolas Maduro.
Brent crude futures rose 0.5%, or 30 cents, to $62.06 a barrel by 0930 GMT, while U.S. West Texas Intermediate rose 0.4%, or 25 cents, to $58.57 a barrel.
Rupee vs dollar
The Indian rupee moved higher on Tuesday to close 0.1% stronger at 90.1650 against the dollar, ending a four-session losing streak, as selling of dollars by state-owned banks and foreign lenders provided modest support to the local currency.
Regional signals were mixed. The dollar index extended its retreat from Monday, while most Asian currencies traded within narrow ranges, giving the rupee only limited direction.
(with input from agencies)
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