Domestic benchmarks Sensex and Nifty fell for the fourth straight session on Tuesday amid weak cues from global equity markets.
BSE 30-share benchmark Sensex ended 300 points lower at 37,734 and NSE Nifty 50 fell 96 points to 11,153. Yesterday, Sensex ended 811 points lower at 38,034 and Nifty fell 282 points to 11,222.
Maruti was the top loser on Sensex followed by L&T, IndusInd Bank, Axis Bank, ONGC, Reliance Industries, Asian Paints and HDFC. On the other hand, HCL Tech, TCS, Sun Pharma and Tech Mahindra were among the gainers.
The domestic market briefly tried to recover during the afternoon session but failed even after Euro zome opened in the green. Traders have taken a cautious stance over concerns over the second wave of coronavirus in Euro. All the sectoral indices ended in red except Nifty IT and Nifty Pharma that closed 0.70% and 0.66% higher, respectively.
Overseas, equities were trading mixed today as fears about the potential worsening of the coronavirus pandemic, as well as uncertainty on further US fiscal stimulus spooked traders.
Asian markets ended mostly down as shares continued to witness selling pressure, tracking weak sentiment in the US. Markets across the globe slipped on concerns over the second wave of coronavirus and its economic impact.
However, European markets opened in the green today as focus turned toward Central bank Chairman's testimony. US FOMC Chair will testify today before the House of Representatives. Commodity traders said investors awaited developments on the US fiscal stimulus by the Federal Reserve policymakers in the US.
Vinod Nair, Head of Research at Geojit Financial Services said," Global cues were also mixed with Asian markets in the red, while European markets have opened in the green. Doubts about the timing of a global economic recovery emerged, following talks of further restrictions to contain a resurgence in virus infections around the world, especially in Europe."
"Sensex and Nifty continued to be in correction mode by closing down by 0.79% and 97 points 0.86%, respectively due to a spike in covid cases in Europe. Global cues were mixed as Nasdaq Futures and FTSE were up by 0.52% and 0.34% respectively, while Dow Futures was down by 0.18," said Keshav Lahoti, Associate Equity Analyst, Angel Broking.
As per Geojit Financial, "While a collapse is less expected, initial pull back to 11370-11410 is likely to attract liquidation pressure with 11170 in perspective. It would, however, require more confirmation before playing the 10800-10500 view. Until then, the 11170-11000 region is favoured to diffuse the bearish momentum."
Expressing views on the near term technicals, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We could go down to 10950-11000 for starters and if we don't halt there, we could fall further to test 10800. The resistance on the upside is 10600-10650 and till we do not cross that, a sell on every rise would be the appropriate strategy to adopt."
In the forex market, the rupee depreciated 20 paise to close at 73.58 against the US dollar.
Investors were spooked amid a resurgence in COVID-19 infections across the world and European cities announcing new restrictions to curb the pandemic from spreading. Worldwide, there were 314 lakh confirmed cases and 9.69 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 0.88 lakh and total coronavirus cases stood at 55.62 lakh as of Tuesday.