Guwahati: Paring some of the losses in early trade following encouraging indications from global markets, Indian stock indices closed Tuesday slightly lower.
As of the closing, the Sensex was down 103.90 points, or 0.17 percent, and the Nifty was down 35.15 points, or 0.19 percent, at 18,385.30 points. The intraday lows for the Sensex and Nifty were 61,102 points and 18,202 points, respectively.
“Global markets fell (on Tuesday) after the Bank of Japan unexpectedly changed its ultra-dovish stance and tweaked its bond yield controls – a move that will allow long-term interest rates to rise more,” said Deepak Jasani, Head of Retail Research, HDFC Securities, adding that low market volumes have led to higher intraday volatility in the financial markets.
The top five declines among the Nifty 50 equities were SBI Life, Eicher Motors, UPL, Tata Motors, and Hindustan Unilever. In contrast, according to statistics from the National Stock Exchange, Adani Enterprises, TCS, Reliance, Axis Bank, and IndusInd Bank were the biggest gainers.
The information showed that all of the Nifty sectors indexes traded lower throughout the session, with the exception of Nifty IT, Nifty Metal, and Nifty Oil & Gas.
“The Bank of Japan shocked global markets in a totally unexpected move by raising the upper band limit for the 10 year yield to 50 bps, which is seen as a step towards a hawkish policy shift. This has aggravated the sell-off in the global market, which was already risk-averse due to mounting recessionary fears following the Fed’s comment,” said Vinod Nair, Head of Research at Geojit Financial Services.
In light of this, Nair predicted that the US GDP figures, which are scheduled to be revealed on Thursday, would paint a picture of the US economy’s strength.
On the other hand, the rupee ended the day at 82.76 against the US dollar as opposed to 82.71 on Monday.
According to Jateen Trivedi, VP Research Analyst at LKP Securities, the rupee’s range is now constrained and is anticipated to be between 82.50 and 82.95 with a hint of weakening.