Markets extended losses for the fifth straight session to end Samvat Year 2071 on a dismal note as traders turned cautious in the truncated week while worries over foreign fund outflows amid prospects of interest rate hike by the US Fed also dampened sentiment.
Further, Bihar Assembly polls verdict in which the ruling NDA led by BJP lost in the Bihar Assembly elections also weighed on market sentiment.
The Sensex closed 378 points lower at 25,743 and the Nifty lost 131 points lower at 7,784. n the broader market, BSE Midcap index lost 1.7% while BSE Smallcap index ended 0.8% lower. The market breadth ended weak with 1,586 declines against 1,030 advances on the BSE.
"Bears are having an upper hand over the bulls at present and the markets extended its losing streak for the 5th consecutive day as investors remained cautious during the pre Diwali trade. The impact of Bihar verdict, weak inflation data from China and increasing possibility of US FED rate hike in December have added negative sentiments in the market," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
Markets will be open for trading from 5.45pm to 6.45pm tomorrow on account of a special Muhurat trading session to herald the new year Samvat 2072. However, Markets will remain closed on Thursday, 12 November 2015 on account of Diwali Balipratipada.
According to Reuters poll, inflation is likely to rise higher in October owing to higher food prices and lower demand. Meanwhile, sluggish demand is likely to hurt the industrial output.
"Traders have turned cautious because of the truncated week while the absence of buyers has further accentuated the fall," said G Chokkalingam, Founder & MD, Equinomics & Research Advisory.
SECTORS & STOCKS
11 out of 12 sectoral indices end in red with BSE Oil & Gas index slumping nearly 4% while BSE Metal index lost nearly 3%.
Shares of refinery companies reeled under pressure amid a steep decline in global crude oil prices. HPCL, ONGC, RIL, BPCL, IOC and Cairn India plunged between 5-8%.
Hindalco reported a net profit of Rs 103.27 crore in the September quarter, up 31% from same period last year on the back of increased revenues and higher other income even as total expenses and finance cost mounted. However, the stock closed 1% lower.
Shares of Jet Airways (India) and SpiceJet which opened the session on a positive note closed 5% lower each after the listing of InterGlobe Aviation, which owns low-budget airlines IndiGo at Rs 856.
Shares of auto companies closed higher as sales of auto companies in the domestic market increased in the month of October amid demand in the ongoing festive season. Maruti Suzuki, Hero Motocorp , Bajaj Auto and M&M gained between 1-2%.
Dr. Reddy’s slumped 4.5% on the back of the warning letter issued by the US Food and Drug Administration (USFDA).
Capital Goods stocks closed lower ahead of the IIP numbers due on Thursday. BHEL and L&T lost between 1-3%. Meanwhile, ITC shed nearly 2% ahead of the CPI numbers due on Thursday.
ACROSS THE GLOBE
Asian shares closed lower on Tuesday as a fresh batch of Chinese data added to the uncertainty from prospects of an interest-rate hike by the US Federal Reserve. Hong Kong’s Hang Seng and Singapore’s Strits Times and China’s Shanghai Composite slumped between 0.4-1.5%.
Overnight, US stock markets posted their biggest decline in six weeks, down 1 percent each, as investors remained unnerved about a possible US interest rate hike in December.