Sensex Slips For Second Day Amid Global Cues, Here's Why Banks & Oil Stocks Led The Market Fall

Mumbai: The Indian stock market slipped for the second day in a row on Tuesday, as investors booked profits ahead of the US Federal Reserve’s policy decision. The BSE Sensex fell 436.41 points (0.51 percent) to close at 84,666.28, its lowest level in nearly two weeks. During the day, it dropped as much as 719 points before recovering slightly.

The NSE Nifty also slipped 120.90 points (0.47 percent), ending at 25,839.65, after touching an intraday low of 25,728.

Why the Market Fell?

Analysts said that weak global cues, continuous foreign investor selling, and caution before the Fed meeting all hurt market sentiment. Major private banks, oil companies, and IT stocks faced selling pressure throughout the session.

Among the Sensex stocks, Asian Paints, Tech Mahindra, HCL Tech, Tata Steel, Maruti Suzuki, Sun Pharma, TCS, ICICI Bank, Bajaj Finance, UltraTech Cement, M&M, and Tata Motors PV were the top losers.

However, Eternal, Titan, Adani Ports, BEL, SBI, Bajaj Finserv, NTPC, and Bharti Airtel managed to gain.

Global Factors Add Pressure

Asian markets were mixed-indices in Hong Kong, Shanghai, and South Korea ended lower, while Japan’s Nikkei closed higher.

European markets traded in the green, but Wall Street slipped on Monday.

Analysts also pointed out that rising Japanese bond yields and expectations of a Bank of Japan rate hike added to global uncertainty. Meanwhile, markets are expecting a 25-basis-point rate cut from the US Fed.

FII Selling Continues

Foreign Institutional Investors (FIIs) sold shares worth Rs 655.59 crore on Monday, while Domestic Institutional Investors (DIIs) bought Rs 2,542.49 crore worth of equities, providing some support.

Brent crude prices fell slightly to USD 62.33 per barrel, offering limited relief.