Domestic market benchmarks continued reeling under pressure in light of weak global cues amid concerns over rate hikes, recession and the Ukraine war.
As Reuters reported, " World stocks headed back towards their lowest levels in almost two years on Tuesday, with sentiment weighed down by unease about rapidly rising interest rates, an escalation in the Ukraine war and China stepping up pandemic measures."
Sensex fell 844 points, or 1.46%, to 57,147.32 while the Nifty suffered a loss of 257 points, or 1.49%, to end at 16,983.55.
The BSE Midcap index plunged 1.61% while the Smallcap index ended with a loss of 1.47%.
With this, the market extended losses into the third consecutive session.
The overall market capitalisation of BSE-listed firms dropped to ₹270 lakh crore from ₹274.3 lakh crore in the previous session, making investors poorer by ₹4.3 lakh crore in a single day.
Only two stocks - Axis Bank (up 1.15%) and Asian Paints (up 0.68%) - ended in the green in the 30-share pack Sensex.
Shares of IndusInd Bank, Nestle, Tata Steel, Infosys and Tech Mahindra ended as the top laggards in the Sensex kitty of stocks.
Among the sectoral indices, BSE Realty and Metal cracked more than 3% each while Telecom, IT, Teck, and Consumer Durables fell more than 2% each.
"Investors are becoming risk-averse due to rising geopolitical turmoil as well as worries about the global economic slump. Investors' caution ahead of the announcement of inflation data prevented a better-than-expected start to IT earnings from improving the market mood. However, as compared to global counterparts, domestic selling is not as aggressive since FII selling is primarily absorbed by DIIs," Vinod Nair, Head of Research at Geojit Financial Services observed.
Oil prices fell more than 2% as the benchmark Brent Crude traded below the $95 a barrel mark. The rupee ended flat at 82.32 per dollar.
Palak Kothari, Senior technical analyst, at Choice Broking pointed out that the Nifty formed a bearish 'Marubozu' on the daily charts, suggesting weakness in the counter.
"Nifty has given a closing below the middle band of 'Bollinger' as well as 21 DMA (daily moving average) which adds bearishness to the prices. On the open interest (OI) front, the highest Call OI was witnessed at 17,200 strike while on the highest Put OI was witnessed at 16,800," Kothari highlighted.
"The hourly momentum indicator stochastic & MACD traded with a negative crossover which suggests a downside moment in the upcoming session. The support for Nifty has shifted around 16,800 levels while on the upside, 17,250 may act as an immediate hurdle," said Kothari.
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