The Indian equity benchmarks edged lower on Tuesday mirroring losses in other Asian markets after strong macro-economic data in the United States suggested that the Federal Reserve will continue with its aggressive interest rate hikes going ahead. The Sensex fell as much as 445 points to hit an intraday low of 62,390 and Nifty 50 index touched an intraday low of 18,577.
As of 10:37 am, the Sensex was down 239 points at 62,595 and Nifty 50 index dropped 72 points to 18,628.
The services sector, which makes up the biggest part of the US economy, showed surprising growth in November, the Institute for Supply Management reported Monday. Business orders at US factories and orders for durable goods in October also rose more than expected, other reports said.
That news is positive for the broader economy, but it complicates the Fed’s fight against inflation because it likely means the central bank will have to keep raising interest rates to bring down price pressures.
Back home, selling pressure was broad-based as all the eleven sector gauges, barring the index of FMCG and PSU Bank shares, were trading lower led by the Nifty IT index's over 1 per cent decline. Pharma, Realty, Metal, Bank, Auto, Financial Services and Media stocks were also facing selling pressure.
Mid- and small-cap shares were also facing selling pressure as Nifty Midcap 100 index declined 0.2 per cent and Nifty Smallcap 100 index declined 0.02 per cent.
Hindalco was top Nifty loser, the stock fell 2 per cent to Rs 471. Tata Steel, JSW Steel, Hero MotoCorp, HCL Technologies, Eicher Motors, Infosys, UPL, Dr Reddy's Labs, ONGC and TCS were also among the losers.
On the flipside, Adani Enterprices, Hindustan Unilever, Bajaj Finance, Britannia Industries, Axis Bank, SBI Life, Tata Motors, Mahindra & Mahindra and NTPC were among the gainers.
The overall market breadth was positive as 1,734 shares were advancing while 1,484 were declining on the BSE.
(With inputs from AP)
