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The benchmark indices closed lower amid volatility on Tuesday.
The market started off on a firm note amid mixed global cues and remained volatile through the day. The indices erased all their gains to close lower, witnessing late-hour across-the-board selling.
The BSE Sensex closed at 54,052.61, down 236.00 points or 0.43 per cent. It recorded an intraday high of 54,524.37 and a low of 53,886.28. The Nifty 50 closed at 16,125.15, down 89.55 points or 0.55 per cent. It recorded an intraday high of 16,262.80 and a low of 16,078.60
Over 2200 stocks decline
The market breadth remained in favour of the decliners, with 2,270 stocks declining on the BSE as against 1,036 that advanced, while 124 remained unchanged. Furthermore, 15 stocks hit the upper circuit, as compared to the two stocks that were locked in the lower circuit. Besides, 70 stocks touched a 52-week high level and 77 touched a 52-week low.
The volatility index rose 9.56 per cent to 25.64, signalling caution among investors.
Vinod Nair, Head of Research at Geojit Financial Services said, “Anxiety of a slowing economy and rising interest rates underpinned by soaring inflation continued to haunt the global market.”
“The UK and Eurozone composite PMI registered the slowest rise in business activity in May, worsening global investor risk sentiment. On the domestic front, while all major sectors succumbed to the pressure, the auto sector bucked the market trend this month, gaining on a fuel price cut and a rise in steel customs duty,” said Nair.
Dr Reddy’s, HDFC, Kotak Bank, Powergrid and HDFC Bank were the top gainers on the Nifty 50, while Divi’s Lab, Tech Mahindra, Grasim, Hindustan Unilever and Hindalco were the top losers.
Sectoral indices
On the sectoral front, a majority of indices closed in the red with IT, pharma, metal, realty and FMCG witnessing increased pressure.
Nifty IT was down nearly 2 per cent at closing. The Nifty Pharma and Nifty Healthcare Index were down 1.5 per cent each. Nifty Metal, Nifty Realty and Nifty FMCG were each down over 1 per cent.
Meanwhile, Nifty Financial Services managed to retain gains, closing 0.32 per cent higher.
Broader market under pressure
The broader market faced pressure as the broader indices closed in the red. Smallcaps witnessed heavy selling pressure.
The Nifty Midcap 50 was down 0.47 per cent, while the Nifty Smallcap 50 was down 1.51 per cent. The S&P BSE Midcap was down 0.85 per cent, while the S&P BSE Smallcap was down 1.14 per cent.
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