The market breadth, indicating the overall health of the market, turned negative by close
The benchmark indices on Tuesday erased entire intraday gains to extend losses for the fourth straight session as investors booked profit in banking stocks after Nifty PSU Bank index hit its 52-week high on expectations of robust March quarter earnings.
The S&P BSE Sensex settled the day at 29,319, down 94 points, while the broader Nifty50 ended at 9,105, down 34 points.
In the broader market, the BSE mid-cap (down 0.6%) and small-cap (down 0.7%) indices ended in red after hitting their respective record highs.
The market breadth, indicating the overall health of the market, turned negative. On the BSE, 1,769 shares declined and 1,120 shares rose. A total of 137 shares were unchanged.
"Market went into correction due to the weakness in global market while the monsoon is predicted to be at the lower band, which did not support investors’ sentiment. The outlook of monsoon will impact RBI's future measure which will limit the chance for further reduction in cost of funds. The correction may be limited depending upon the outcome of quarter results & the prospects of GST," said Vinod Nair, Head of Research, Geojit Financial Services.
Sectors and stocks
The Nifty Realty index (down 3.4%) was the leading sectoral loser, led by losses in Indiabulls Real Estate (down 10%), HDIL (down 5.3%) and Unitech (down 5%).
Nifty PSU Bank index cut all its gains to end lower after logging its 52-week high in intraday trade. Nifty Bank, however, settled 0.1% higher.
State Bank of India (SBI), which closed 0.8% higher at Rs 292, became the most valued PSU by market capitalisation (m-cap). Thus far in the calendar year 2017 (CY17), SBI has outperformed the market with over 18% rise, as against 11.5% gain in the benchmark index.
Reliance Industries surpassed Tata Consultancy Services' market capitalisation for a brief moment to become India's most valued company. The stock settled at Rs 1,370, down 1.5%.
TCS ended 0.6% lower ahead of its Q4 results due later in the evening.
Estimates of key brokerage firms suggest revenue growth of the company should range between 4.4 and 5.4% year-on-year basis, while it is expected to grow between 1.5-2% on sequential basis in Q4 in constant currency terms.
Among gainers, Gruh Finance jumped as much as 8% after the housing finance company posted a 26% rise in March-quarter net profit after tax on Monday. The stock ended at Rs 394, up 6.5% on the NSE.
Monsoon forecast
The Indian Meteorological Department (IMD) said in a statement on Tuesday that the country would receive "normal" monsoon, with a fair distribution of rainfall across major parts of the country.
Monsoon 2017 will be qualitatively 96 percent of long-period average (LPA), with a model error of plus or minus 5 per cent, IMD said.
Global markets
European markets were trading lower as tensions between North Korea and the US intensified. The pan-European Stoxx 600 was 0.1% lower. Germany's Dax and France's CAC 40 shed 0.3% and 0.9%, respectively.
Asian markets ended mixed. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.5%. Japan's Nikkei added 0.4%, South Korea's KOSPI advanced 0.2%, while China's Shanghai Composite and Hong Kong's Hang Seng indices dipped 0.8% and 1.2%, respectively.
Geopolitical tensions, notably those between the US and North Korea, have heightened worries about aggressions escalating into a nuclear confrontation. Over the weekend, North Korea put on a massive military parade, followed by a failed missile launch.
In an unannounced visit to the Korean Peninsula's demilitarised zone, US Vice President Mike Pence yesterday warned North Korea not to test the resolve of President Donald Trump or the military strength of the US.
Photograph: PTI Photo
