Sensex slips 388 points, Nifty gives up 17,550; metal, energy, IT shares top losers

Indian equity market fell for the second straight session today, tracking heavy losses in metal, energy and IT shares amid weak global cues. Sensex slumped 388 points to end at 58,576 and Nifty declined 144 points to 17,530.

Tata Steel, Tech Mahindra, Wipro and Bharti Airtel were the top Sensex losers, falling up to 2.76%. Axis Bank, Kotak Bank, and PowerGrid were among the top Sensex gainers, rising up to 1.67%.

Metal, oil and gas and IT shares were the top sectoral losers with their BSE indices falling 825 points, 499 points and 539 points, respectively.

BSE midcap and small cap indices slumped 369 points and 438 points, respectively.

The market breadth was negative with 1166 shares ending higher against 2253 stocks in the red. 97 shares were unchanged.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "Bank Nifty Bulls came back strong in the second half and outperformed the Nifty Index. The index is near the resistance zone of 38000 and needs to take out this level decisively for the bulls to gain full control. The lower zone of 37400-37300 is acting as a demand area and a close below it will trigger fresh selling pressure".

Share Market Update: Sensex falls 388 pts, Nifty ends below 17,550; Tata Motors slips 3%

Market cap of BSE-listed firms fell to Rs 271.99 lakh crore today.

Foreign institutional investors (FIIs) withdrew Rs 1,145 crore into equities on a net basis on Monday amid a fall in the market, according to stock exchange data.

Benchmark indices closed lower on Monday due to selling in IT, capital goods and banking shares. Sensex tanked 482.61 points to settle at 58,964.57. Nifty declined 109.40 points or 0.62 per cent to finish at 17,674.95. Larsen & Toubro, HCL Technologies, Infosys, Wipro, Asian Paints, HDFC, HDFC Bank, Axis Bank were the top Sensex losers.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "A reasonable negative candle was formed on the daily chart with minor lower shadow. Technically, this pattern indicates continuation of weakness in the market. After sliding below the initial support of 17600 levels on Monday, Nifty is now placed at the next lower support of around 17500-17450 levels. Though, Nifty placed at the support, still there is no indication of any convincing bottom reversal pattern at the lows and one may expect further weakness in the short term.

After showing resilience in the last few sessions, the overall market breadth has turned into negative on Tuesday and broad market indices have closed in the red. This is not a good sign and one may expect further weakness ahead. The short term trend of Nifty continues to be negative. though, Nifty placed at the support of 17400 levels, there is a possibility of further weakness in the short term. The market could possibly find support around 17300 levels and is expected to bounce from the lows."

Meanwhile, rupee fell 23 paise to end at 76.14 against the US dollar today. During the trading session, the rupee witnessed an intra-day high of 75.97 and a low of 76.17 against the American currency.