The market declined sharply due to negative global cues. The barometer index, the S&P BSE Sensex, fell 306.33 points or 0.88% to 34,344.91, as per the provisional closing data. The Nifty 50 index fell 106.35 points or 1.01% to 10,430.35, as per the provisional closing data. Global stocks fell as investors continued to assess potential trade tensions, the possible cancellation of a June summit with North Korea and a fall in commodity prices.
After opening on a positive note, the market declined as the session proceeded. Indices hovered in a range with small losses in mid-morning trade. Indices pared losses in early afternoon trade. Selling once again picked up pace in in late trade.
The Sensex rose 17.23 points, or 0.05% at the day's high of 34,668.47 in early afternoon trade. The index fell 348.35 points, or 1.01% at the day's low of 34,302.89 in late trade, its lowest intraday level since 23 April 2018. The Nifty fell 3.15 points, or 0.03% at the day's high of 10,533.55 in early trade. The index fell 118.90 points, or 1.13% at the day's low of 10,417.80 in late trade, its lowest intraday level since 16 April 2018.
Among secondary barometers, the BSE Mid-Cap index fell 0.24%. The BSE Small-Cap index fell 0.47% each. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1127 shares rose and 1529 shares fell. A total of 121 shares were unchanged.
Tata Steel (down 6.77%), ONGC (down 5.07%), Dr. Reddy's Laboratories (down 3.11%), IndusInd Bank (down 2.8%), ITC (down 1.99%), Adani Ports and Special Economic Zone (down 1.91%) and Bharti Airtel (down 1.69%), were the major Sensex losers.
State Bank of India (up 3.48%), NTPC (up 0.82%), Tata Motors (up 0.57%), Larsen & Toubro (up 0.44%), ICICI Bank (up 0.28%) and Mahindra and Mahindra (up 0.06%), were the major Sensex gainers.
On the political front, Janata Dal (Secular), or JD(S), leader H D Kumaraswamy will take oath as Chief Minister of Karnataka today, 23 May 2018, at 16:30 IST on the steps of the Vidhana Soudha, the state secretariat. Governor Vajubhai Vala will administer the oath of office and secrecy to Kumaraswamy.
The 12 May 2018 Karnataka assembly polls threw up a hung verdict with BJP emerging as the single largest party with 104 seats. The Congress was next with 78 and the JD(S) followed with 37. The BSP has one MLA and two seats went to Independents.
Overseas, European shares declined as a drop in crude prices weighed on energy companies. Asian shares slipped after US President Donald Trump said he was not satisfied with bilateral trade talks with China that occurred last week, but called them a start to working out the US trade imbalance with Beijing.
Meanwhile, China announced on Tuesday that it would reduce tariffs on some vehicles to 15% from as much as 25%. Tariffs on certain automotive parts would also be cut.
US stocks closed lower overnight as uncertainty over trade policy and other geopolitical issues remained high.
On the geopolitical front, Trump said Tuesday there was a substantial chance that a summit with North Korean leader may not work out. Trump's comments came as he met South Korean President Moon Jae-in ahead of a planned meeting, scheduled for 12 June 2018, with Kim.
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