With investors turning cautious amid global trade wars and political uncertainties at home, equity indices declined for the third straight session.
The benchmark BSE Sensex ended 509.54 points lower, or 1.51%, to 33,176, while the Nifty 50 fell 165 points, or 1.59%, to close at 10,195.15.
Selling pressure
According to traders, Asian markets also ended in red over the prospects of a global trade war, which exerted selling pressure on the domestic markets. This was the biggest fall of the benchmark indices in more than a month. At home, political uncertainties emerged after the Telegu Desam Party decided to quit the National Democratic Alliance government at the Centre and demanding a no-confidence motion against the Narendra Modi-led Bhartiya Janata Party government.
“Trading for the day began on a dull note as the key benchmark indices edged lower in early trade on negative Asian stocks,” said Karthikraj Lakshmanan, senior fund manager, Equities, BNP Paribas Mutual Fund.
“Subdued global markets and bits of political skirmishes at home, dampened investor sentiment. The India VIX (volatility index) shot up by over 5% today while all of the sectoral indices on the National Stock Exchange (NSE) closed the day in the red,” Mr. Lakshmanan said.
All sectoral indices were in the red as Nifty Bank, Auto, FMCG, Metal, Pharma and Realty indices closed lower in the range of 1-2%. Some late pullback in the technology stocks helped the IT index to cut its loss to half a percent. Market participants said bears could take charge of the market if the present headwinds persist and the Nifty 50 may test 10,000 levels.
