Sensex falls 175 pts on rupee woes, rising crude prices

Mumbai: The BSE Sensex erased all early gains to end 175 points lower in choppy trade Tuesday, posting its fourth fall in five sessions due to widespread selling in auto, consumer, realty, oil and gas and banking stocks, amid weakening rupee and boiling crude oil prices.

The 30-share Sensex opened higher at 34,651.82 points but slipped into the negative zone to hit a low of 34,233.50 before ending at 34,299.47, recording a fall of 174.91 points, or 0.51 per cent.

Similarly, the NSE Nifty after shuttling between 10,397.60 and 10,279.35 points, ended 47 points, or 0.45 per cent, lower at 10,301.05.

“Volatility continued in the market in spite of which short-term investors are accumulating select beaten down stocks with an eye on upcoming quarter earnings,” said Vinod Nair, Head of Research, Geojit Financial Services.

However, negative sentiments from global market on concerns over a slowing world economy led by lingering trade war between the US and China dragged the market, he added.

According to a Nomura report, the recent market fall has to a large extent corrected the excess. However, it is still difficult to call a bottom on the valuation and further downside cannot be ruled out.

Market sentiment was also dampened on unabated foreign fund outflows and the International Monetary Fund (IMF) downgrading outlook for world economy to 3.7 growth on Tuesday.

The Indian currency collapsed to a new lifetime low of 74.27 in intra-day trade, raising concerns on the macroeconomic front.

Selling was more pronounced in consumer durables, auto, oil and gas, FMCG, realty, PSU and banking stocks that dragged the indices into the negative zone.

Among Sensex constituents, Tata Motors was the worst hit, plunging 13.40 per cent to end at multi-year low of Rs 184.25, after the company-owned Jaguar Land Rover (JLR) reported 12.3 per cent decline in global sales in September.

Other laggards include Asian Paints falling 3.95 per cent, Maruti Suzuki 3.07 per cent, HUL 2.73 per cent, Bharti Airtel 2.29 per cent, Bajaj Auto 1.85 per cent, ITC 1.81 per cent, RIL 1.58 per cent, ICICI Bank 1.50 per cent, M&M 1.36 per cent, SBI 1.26 per cent, NTPC 1.22 per cent, Axis Bank 0.67 per cent and HDFC Bank 0.17 per cent.

In contrast, Adani Ports emerged as the top gainer by rising 4.52 per cent, followed by HDFC falling 2.59 per cent.

Vedanta, Tata Steel, Coal india, Yes Bank, Sun Pharma, Wipro, TCS, L&T, Infosys, IndusInd Bank and Kotak Bank too showed strength, gaining up to 2.44 per cent.

Shares of oil marketing companies such as HPCL, BPCL and IOC were down up to 4.20 per cent as global crude oil prices again rose on reports of decline in crude export from Iran.

Sectorally, the BSE consumer durables index emerged worst performer by falling 3.91 per cent, followed by auto at 2.62 per cent, oil and gas 1.92 per cent, FMCG 1.68 per cent, PSU 1.19 per cent, realty 1.06 per cent, power 0.62 per cent, bankex 0.47 per cent, infrastructure 0.41 per cent, capital goods 0.25 per cent.

However, metal, healthcare, teck and IT indices managed to close in the positive zone by rising up to 1.01 per cent.

A mixed trend at other Asian markets and a lower opening in the euro zone too triggered selling on the domestic bourses here.

Japan’s NIkkei fell 1.32 per cent, Straight Time shed 0.49 per cent, while Shanghai rose 0.17 per cent.

In the euro zone, FTSE, CAC and DAX were little changed in their late morning deals.