The Sensex and Nifty closed lower on the second trading day of this year hit by losses in auto , metals and banking stocks. The disappointing December sales numbers led to weakness in the auto stocks which dragged the broader market lower.
Investors also indulged in profit booking and turned cautious before corporate results begin to roll in next week while local indexes also tracked a decline in broader Asia.
While the Sensex closed 363 points lower at 35,891, Nifty ended 117 points in the red at 10,792. Of 30 Sensex stocks, 24 ended in the red.
Sun Pharma (1.50%), Asian Paints (0.66%) and TCS (0.93%) were the top Sensex gainers.
Top Sensex losers were Vedanta (4.35%), M&M (4.28%) and Tata Steel (4.18%).
Top sectoral losers were auto stocks with the BSE auto crashing 622 points to 20,103 points.
The Eicher Motors stock closed 8.71% or 2020 points lower at 21,164 after its two-wheeler division Royal Enfield reported a 13 per cent decline in total sales to 58,278 units in December compared to 66,968 units in December last year.
The BSE metals index also fell 405 pts to 11,346. Banking stocks also ended in losses with the BSE bankex falling 236 points to 30,379.
The Mahindra and Mahindra (M&M) stock closed lower for the second consecutive day after the firm reported a fall in December sales in domestic market. Domestic sales slumped to 36,690 units in December compared to 36,979 units in the same month last year.
The stock closed 4.15% to 741 level in trade today.
Meanwhile, the BSE mid cap and small cap indices closed 194 points lower and 108 points lower in trade today. Market breadth was negative with 950 stocks closing lower compared to 1601 falling on the BSE.
Global stock markets tumbled Wednesday as 2019 trading began with news of weaker Chinese manufacturing.
In early trading, France's CAC 40 plunged 2.3 percent to 4,618.90 and Germany's DAX retreated 1.1 percent to 10,441.67. On Monday, the CAC rose 1.1 percent but it ended 2018 down about 11 percent. London's FTSE 100 retreated 0.1 percent for an annual loss of 12.5 percent. Germany's DAX rose 1.7 percent Friday on its last trading day of 2018 but ended the year down 18 percent. On Wall Street, the future for the Standard & Poor's 500 index was off 1.9 percent and that for the Dow Jones Industrial Average also was down 1.9 percent.
The Shanghai Composite Index fell 1.2 percent to 2,465.29 and Hong Kong's Hang Seng lost 2.8 percent to 25,130.35. Seoul's Kospi gave up 1.5 percent to 2,010.00 and Sydney's S&P-ASX 200 sank 1.2 percent to 5,557.80. Bangkok and Manila advanced. Tokyo's markets were closed.
Edited by Aseem Thapliyal