The Sensex and Nifty closed lower today on profit booking amid fresh worries over trade war between US and China. While the Sensex slipped 176 points lower to 33,891, Nifty lost 52.45 points to 10,198.
Reliance Industries fell 2.8 percent, while Housing Development Finance Corporation slipped 1.6 percent. Hindustan Petroleum Corp Ltd fell 4.77 percent, and was the top loser on the NSE index.
Software services exporter Infosys rose 2.3 percent and was the biggest boost to the Sensex. Other Sensex gainers were HUL (2%), SBI (1.90%) and TCS (1.37%). IndusInd Bank (3.50%), Coal India (3.47%), and RIL (2.84%) were top Sensex losers.
Of 30 Sensex stocks, 11 ended in the red. Overall market sentiment remained weak largely in sync with other Asian markets, tracking overnight losses at the Wall Street as caution grew ahead of a slew of earnings reports this week, brokers said.
Sahaj Agrawal from Kotak Securities said, "Nifty50 witnessed some correction in today's session after staging strong recovery from critical trend defining level of 9,950. Global markets continue to witness mixed activity with a negative bias. Volatility remains high as the market struggles to find its bottom and define further course. We expect consolidation to continue in the near term in the range of 10,000-10,500 before a breakout on the upside. Midcap space has outperformed while banking has witnessed mixed activity. Pharma and FMCG sectors expected to outperform while pressure is seen in the auto and realty space."
However, mid cap and small cap stocks rose 0.91% and 0.94%, respectively and capped losses in the market. Among BSE sectoral indices, oil and gas index was the top loser falling 1.70% or 224 points to 13,013 level.
Other indices which lost are BSE metal index (1.21%) and bankex (0.54%). HPCL was the top Nifty loser after oil marketing company's September quarter net profit nearly halved to Rs 1,218.71 crore, well below analysts' expectations, hurt by higher expenses on account of forex losses.
However, gains in IT stocks limited losses for the market. The BSE IT index was the top gainer rising 235 points or 1.71% to 14,036 points.
Market breadth was positive with 1479 stocks closing higher compared to 1080 falling on the BSE. 150 stocks were unchanged.
A couple of banks have come out with a good set of results, so there is optimism on earnings growth in corporate banks, said Neeraj Dewan, director at Quantum Securities.
Meanwhile, on a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 2,230.79 crore on Monday, while domestic institutional investors (DIIs) bought shares worth Rs 2,526.90 crore, as per provisional data. On Monday, the Sensex rose 718 points or 2.15% to 34,067 and the Nifty gained 2.20% or 220 points to 10,250.
Global market sentiment was muted after a Bloomberg report said United States was preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade war.
In Europe, Britain's FTSE 100 added 0.2 percent to 7,037.82, but Germany's DAX fell 0.7 percent to 11,256.02 and the CAC 40 in France sank 0.6 percent to 4,961.33. Wall Street was poised for an optimistic open. Futures for the Dow were up 0.1 percent at 24,454.00 and the broader S&P 500 futures added 0.2 percent to 2,649.20.
Japan's Nikkei 225 index jumped 1.5 percent to 21,457.29 after official data showed that the unemployment rate eased to 2.3 percent in September, from 2.4 percent a month earlier. The Shanghai Composite index rebounded 1 percent to 2,568.05 and South Korea's Kospi picked up 0.9 percent to 2,014.69. Australia's S&P-ASX 200 gained 1.3 percent to 5,805.10. Hong Kong's Hang Seng bucked the trend, slipping 0.9 percent to 24,585.53. Shares were higher in Taiwan, Indonesia and Thailand but fell in Singapore.