Markets tank amid high selling in IT & finance

Mumbai: Equity benchmark Sensex tumbled by 410 points or 0.68 per cent on Tuesday due to heavy selling in IT, financials and telecom stocks in line with weak global trends as US bond yields rebounded.

After plunging over 1,032 points during the session, the 30-share BSE barometer pared some losses to end 410.28 points or 0.68 per cent lower at 59,667.60.

The broader Nifty of the National Stock Exchange declined by 106.50 points or 0.60 per cent to close at 17,748.60, dragged down by Bharti Airtel and Tech Mahindra. As many 32 of Nifty constituents declined while 18 advanced.

Bharti Airtel was the top loser in the Sensex pack, shedding nearly 4 per cent, followed by Tech Mahindra, Bajaj Finance, Bajaj Finserv, HCL Tech and Infosys.

However, gains in Reliance Industries, Kotak Bank and PowerGrid restricted the losses in the index. NTPC, Sun Pharma, Titan, and Dr Reddy's were also among the gainers.

A power shortage in some parts of China led to temporary closure of factories under a measure to meet energy use targets. Analysts feared that the shut down could have global impact, including on supplies needed for manufacturing throughout Asia ahead of the year-end shopping season.

Among sectoral indices, BSE Realty dropped the most by 3.02 per cent, followed by Teck (2.12 per cent) and Telecom (1.98 per cent). However, utilities, power, oil and gas, energy and metal indices ended with gains.

Broader midcap and smallcap indices fell up to 0.71 per cent.

Meanwhile, international oil benchmark Brent crude rose 0.89 per cent to USD 79.42 per barrel.

The rupee tumbled 23 paise to close at 74.06 against the US dollar on Tuesday amid a lacklustre trend in domestic equities and strengthening of the American currency in the overseas market.

At the interbank foreign exchange market, the local currency opened at 73.79 and witnessed an intra-day high of 73.73 and a low of 74.12 against the US dollar in day trade.

The local unit finally settled at 74.06 a dollar, down 23 paise over its previous close. On Monday, the rupee had settled at 73.83 against the US dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.26 per cent higher at 93.62.

Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 594.63 crore, as per exchange data.