Stocks close lower, led by losses in banking and metal stocks
Stocks closed lower on Tuesday, led by losses in banking and metal stocks amid a selloff in the global markets sparked by a surge in the Delta variant of the coronavirus. The BSE Sensex closed down 0.68 per cent at 52198.51, while the NSE Nifty fell 0.76 per cent to 15632.10 .
The Nifty Bank Index was a major drag, down 1.89 per cent, with HDFC Bank, IndusInd, ICICI Bank and AU Small Finance Bank among the losers. Metal and realty also ended down at 2.34 per cent and 2.53 per cent, respectively.
European shares bounced back from their worst day of the year on Tuesday, but Asian stocks were down, as the fast-spreading Delta variant raised fears that further lockdowns could upend global economic recovery.
On Monday, the 30-share gauge had tumbled by 587 points on these factors. Market circles feel stocks are likely to remain under pressure even as investors will focus on India Inc’s results.
The Sensex on Tuesday opened lower at 52432.88 and hit an intra-day low of 52013.51 — a drop of 539.89 points — and later closed down 354.89 points at 52198.51.
“Bears dominated D-street following overnight selling in global markets. A sharp fall in crude prices and US bond yields reflected the rising concern over a fall in future growth. Vulnerability from premium valuations, the upcoming FOMC meeting and selling by foreign investors exposed the Indian market.
However, western markets attempted to recover from the selloff which provided some comfort to the domestic market but the selling continued,’’ Vinod Nair, head of research at Geojit Financial Services, said.
Gaurav Udani, CEO & founder, ThincRedBlu Securities, warned that a further fall below 15600 can take the Nifty to 15400 levels.
Meanwhile, the rupee reversed early losses to close 27 paise higher at 74.61 against the dollar on Tuesday.