Indian shares ended lower on Tuesday after the broader NSE index hit a one-year high as investors booked profits ahead of a state ministers' meeting to discuss the Goods and Services Tax Bill.
Caution was the watchword among investors on Tuesday, with equity markets mixed and the yen scampering higher ahead of central bank meetings in the United States and Japan.
The 30-share BSE index Sensex ended lower by 118.82 points or 0.42 per cent at 27,976.52 and the 50-share NSE index Nifty ended down by 45 points or 0.52 per cent at 8,590.65.
Among BSE sectoral indices, realty index fell the most by 1.32 per cent, auto 1.12 per cent, healthcare 1.11 per cent and PSU 0.78 per cent. On the other hand, IT index was up 0.38 per cent, TECk 0.26 per cent and power 0.08 per cent.
Gainers, losers
Top five Sensex gainers were Axis Bank (+2.85%), Power Grid (+1.63%), Tata Steel (+1.06%), Wipro (+0.77%) and Infosys (+0.77%), while the major losers were Dr Reddy's (-4.37%), ICICI Bank (-2.64%), Hero MotoCorp (-2.12%), State Bank of India (-1.46%) and Maruti (-1.44%).
Dr Reddy's Laboratories Ltd was the biggest percentage loser on the NSE index after its June-quarter profit slumped 75 per cent.
Shares of Lupin Ltd fell as much as 1.63 per cent after gaining around 10.9 per cent so far this month as of Monday's close. HDFC Bank was the biggest drag on the NSE, and was down 0.6 per cent after gaining 6.17 per cent so far this month as of last close.
Cement companies ACC Ltd and Ambuja Cements rose as much as 2.04 per cent and 1.86 per cent, respectively, ahead of their results scheduled later in the day.
Canara Bank shares were up 4.05 per cent, after falling as much as 2.8 per cent as quarterly profit more than halved.
GST Bill
Investors hope uncertainties about the much-delayed GST Bill would be cleared as state finance ministers meet on Tuesday to discuss it ahead of a debate in the Upper House of Parliament.
The Bank of Japan is expected to ease policy after Governor Haruhiko Kuroda said on Saturday he would do so, if necessary, to achieve the 2 per cent inflation goal.
The US Fed is expected to keep interest rates unchanged, according to a Thomson Reuters poll, but investors closely await its statement for clues on policy direction.
“The market is reflecting a combination of cautious sentiments and profit-booking today,” said Anand James, chief market analyst at Geojit BNP Paribas Financial Services.
“After NSE and BSE recorded huge gains on Monday, investors booked profits, partly due to the uncertainties surrounding the tax bill.”
A report by IFA Global said: "Asian stock markets are trading almost flat, with Hang Seng index trading marginally higher by 185 points and Nikkei index is trading lower by 257 points tracking declines in US stocks after lower oil prices and dragged by fresh strength in the yen after a local media report indicated the government's highly anticipated stimulus package may not live up to expectations.
US stock markets closed in the red, the Dow Jones Industrial Average closed lower by 78 points and Nasdaq index closed marginally lower by 3 points. The US equity markets slumped as a downturn in oil prices led losses in energy stocks and fuelled sell-off in the sector. European stock markets closed on a positive note, with FTSE closing lower by 20 points and CAC closing higher by 7 points, European indices closed on mixed note despite a better-than-expected German Ifo Business climate figure."