Markets fall for 2nd straight session as Sensex drops 186 points, Nifty ends below 15,800

Mumbai: Equity indices languished for the second straight session on Tuesday as investors pared back their exposure to riskier assets amid a cautious trend in global markets due to a fresh spurt in COVID-19 cases in many countries.

A weakening rupee and the fiscal impact of the government's new stimulus measures also sapped risk appetite, traders said.

The 30-share BSE Sensex ended 185.93 points or 0.35 per cent lower at 52,549.66. Similarly, the broader NSE Nifty tumbled 66.25 points or 0.42 per cent to 15,748.45.

Kotak Bank was the top loser among the Sensex constituents, shedding 1.54 per cent, followed by ICICI Bank, Tech Mahindra, Bajaj Auto, Axis Bank, Mahindra and Mahindra, SBI and Maruti.

On the other hand, PowerGrid, HUL, NTPC, Dr Reddy's, Nestle India and IndusInd Bank were among the gainers, spurting up to 1.75 per cent.

The latest credit push for the pandemic-hit sectors and other relief supports will have an additional 60 bps impact on the fiscal deficit, and can offer an additional liquidity window of Rs 70,000 crore to

banks, SBI Research said in a report.

Arijit Malakar, Head of Research Ashika Stock Broking, said, "Domestic markets remained weak in line with Asian markets as investors were concerned with the more infectious Delta variant of the coronavirus and the re-imposition of restrictions in parts of Asia, Europe, South Africa and South America."

Sector-wise, BSE metal, oil and gas, telecom, bankex and auto indices fell up to 1.35 per cent, while healthcare, FMCG and utilities closed with modest gains.

Broader BSE midcap and smallcap indices fell up to 0.42 per cent.

Meanwhile, international oil benchmark Brent crude was trading 0.27 per cent lower at $ 73.94 per barrel.