The Indian equity markets were on Tuesday pulled lower as a weak rupee coupled with caution ahead of derivatives expiry and heavy selling pressure witnessed in healthcare stocks suppressed investors' sentiments.The equity markets also reacted to the Indian Army's claim to have decimated several Pakistani military posts along the Line of Control in Jammu and Kashmir. The Indian Army's recent "punitive assault" was part of counter-terror strategy to stop cross-border militant incursion.The 30-scrip Sensitive Index (Sensex) of the BSE tanked over 200 points or 0.67 per cent to close at 30,365.25 points.The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped below its psychologically important 9,400-mark to close at 9,386.15 points -- down 52.10 points or 0.55 per cent."Markets ended lower on Tuesday after a volatile session. Broader markets witnessed major selling pressure, with indices like the BSE mid-cap and small-cap indices underperforming the Sensex," Deepak Jasani, Head (Retail Research), HDFC Securities, told IANS."Selling pressure increased in mid-afternoon trade after the Indian Army reportedly said it has hit locations across the LoC with Pakistan recently. The statement suggests an escalation in tensions along the LoC, where a cease-fire has often been violated."
The S&P BSE mid-cap index slipped by 1.56 per cent and the small-cap index by 1.89 per cent.Anand James, Chief Market Strategist, Geojit Financial Services, said: "PSBs (state-run banks) cut losses ahead of F&O (futures and options) expiry, giving brief sense of recovery. Market breadth remained suppressed by earnings shocks as long liquidation pressure.""Market would now wait for monsoon updates and further news on NPAs (non-performing assets) resolution before making the next decisive move."According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, firm USD/INR futures prices pressurised the market sentiments.On the currency front, the rupee weakened by 34 paise to 64.89 per US dollar from its previous close of 64.55.In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 400.53 crore, while domestic institutional investors (DIIs) purchased scrips worth Rs 352.54 crore."Banking stocks traded down on continue selling pressure. State Bank of India fell by two per cent even after strong performance in the fourth quarter failed to cheer investors because of the large stock of bad loans of its associate banks that the bank inherited after their merger with it," Desai explained.
"Sun Pharmaceuticals fell five per cent after its arm Taro's fourth quarter EPS from continuing operations stood at $2.05 against $2.68 year on year. Most power sector stocks traded down led by Adani power and Torrent Power with more than five per cent intra-day down losses."Sectorwise, all the sub-indices of the BSE closed in the red, except the automobile index, which rose by 97.75 points.The healthcare index plunged by 397.44 points, the capital goods index by 261.34 points and the consumer durables index by 235.58 points.Major Sensex gainers on Tuesday were: Maruti Suzuki, up 2.70 per cent at Rs 6,880.30; Mahindra and Mahindra (M&M), up 1.71 per cent at Rs 1,329.35; Wipro, up 0.90 per cent at Rs 525.40; Tata Steel, up 0.78 per cent at Rs 490.40; and Hero MotoCorp, up 0.59 per cent at Rs 3,585.45.Major Sensex losers were: Adani Ports, down 6.19 per cent at Rs 332.05; Cipla, down 4.89 per cent at Rs 533.15; Sun Pharma, down 4.33 per cent at Rs 612.55; Bajaj Auto, down 3.02 per cent at Rs 2,824.40; and Gail, down 2.74 per cent at Rs 380.45.