Sensex ends 215 pts lower, Nifty below 17,800 ahead of RBI’s rate decision

Ahead of the Reserve ‘s monetary policy decision tomorrow and commentary from Federal Reserve Chair Jerome Powell tonight, Indian equity indices apparently struggled for direction before closing in the red for a second straight day on Tuesday, dragged by IT, auto and metal stocks.

The BSE Sensex index ended 215 points or 0.36% lower at 60,291, while Nifty50 fell 50 points or 0.28% to settle at 17,714.

From the Sensex pack,

was the worst performer, declining 5.5%. , , , and also closed with losses.

On the other hand,

, , , , L&T and closed with gains.

Sector-wise, Nifty FMCG fell 1.16% and Nifty Auto plunged 1.00%. Media, metal, pharma, healthcare, consumer goods and oil & gas also closed lower. In the broader market, Nifty Midcap50 dropped 0.09% and Smallcap50 declined 0.79%.

“Sentiments in the domestic market were hammered by bears that dominated the US market post the release of strong jobs data. Global markets are currently driven by central bank policies and the surge in bond yields in expectation of more rate actions,” said Vinod Nair, Head of Research at Geojit Financial Services said.

A recovery was seen in the second half of the day as US futures inched higher with investors awaiting for Powell’s speech, Nair added.Global Markets
Asian stock markets were mixed Tuesday after Wall Street sank under pressure from interest rate worries, Japanese wages rose and Australia’s central bank hiked its benchmark lending rate.

The Nikkei 225 in Tokyo lost less than 0.1% to 27,685. The Shanghai Composite Index rose 0.3% to 3,248 and the Hang Seng in Hong Kong advanced 0.36% to 21,299. The Kospi in Seoul added 0.55% to 2,452.

UK’s FTSE 100 rose on Tuesday as bumper results from oil giant BP and a rally in energy stocks helped buck the gloom in global markets as investors were worried about the prospect for higher interest rates. The blue-chip FTSE 100 rose 0.45%.

Currency Watch
The rupee ended little changed against the dollar on Tuesday, having traded in a narrow range ahead of the Reserve Bank of India’s policy decision and the Federal Reserve Chair Jerome Powell’s speech.

The rupee last traded at 82.70 to the dollar, compared with 82.72 in the previous session. The intraday range for the local currency was 82.64 to 82.79.

Crude Impact
Oil prices rose for a second straight session on Tuesday, driven by optimism about recovering demand in China, and concerns over supply shortages following the shutdown of a major export terminal after an earthquake in Turkey. Brent crude futures were up 2.27% to $82.83 per barrel, while West Texas Intermediate US crude futures rose 2.47% to $75.94 per barrel.

(With inputs from agencies)

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