Sensex snaps 5-day gain, ends 709 pts lower; metal, energy stocks drag

The domestic benchmark indices snapped a five-session gaining streak on Tuesday, weighed down by losses in metal and oil and gas stocks amid ease in commodity prices. The weak global cues amid the ongoing Russia-Ukraine war and the U.S. Federal Reserve’s policy meeting also dented market sentiments.

“The world equity market lost its momentum as new financial & trade sanctions were imposed on Russia along with the suspension of gas imports. It is a setback for the market sentiment, which was improving in anticipation of a truce in war,” says Vinod Nair, Head of Research at Geojit Financial Services.

“The Indian market was outperforming due to ease in commodity prices. World markets are also lower ahead of the US Fed meeting in which the market widely expects FOMC to initiate a rate hike,” he added.

Earlier today, the BSE benchmark Sensex opened a tad higher and swung between gain and loss throughout the session. Finally, the 30-share Sensex ended 709 points, or 1.26%, lower at 55,777 due to heavy selling in the final hour of the day’s trade. In a similar trend, the 50-share Nifty closed at 16,663, down 208 points or 1.23%.

The market witnessed broad-based selling with BSE midcap and smallcap indices settling 0.68% and 0.88% lower.

The overall market breadth on the BSE was negative, with 2,173 shares falling of a total of 3,748 traded stocks. As many as 1,447 shares advanced and 128 were unchanged.

Top gainers and losers

Out of top 30 shares on the BSE Sensex pack, 10 ended higher while the remaining settled in negative terrain. Tata Steel, the country’s largest steelmaker, was the biggest loser with a 4.9% loss. The other top laggards include Kotak Mahindra Bank Ltd, Tech Mahindra, Infosys, and Reliance Industries, which fell up to 3.1%.

On the gaining side, auto major Mahindra & Mahindra topped the chart by rising 2.3%. Among others, Maruti Suzuki India, Nestle India, Asian Paints, and Titan Company, gained up to 1.4%.

Barring auto, all sectors end in red

Among sectors, all indices closed in negative terrain, barring auto, while metal and oil & gas declined the most. The BSE metal index ended 4.34% lower, led by index heavyweights such as Hindalco Industries, Jindal Steel & Power, Tata Steel, NMDC, and Vedanta.

The BSE oil and gas index fell 2.58%, tracking a sharp correction in international crude prices, which slipped below $110 a barrel. The worst performers in the oil&gas space were ONGC, Indraprastha Gas, BPCL, GAIL (India), and Reliance Industries.

Global stocks follow Wall Street lower

Shares in the Asia-Pacific region ended mostly lower today, while European stocks also edged lower in early trade on Tuesday. Investors remained focused on developments in the Russia-Ukraine war amid peace talks between the two countries. The caution also prevailed in the market ahead of the U.S. Federal Reserve policy meeting.

In the Asia-Pacific region, Hong Kong’s Hang Seng Index emerged as the worst performer for the second day by falling 5.72 amid concerns about fresh lockdown in China due to rise in Covid-19 cases. In mainland China, the Shenzhen component nosedived 4.3%, while the Shanghai Composite plunged 4.95%.

South Korea’s KOSPI fell 0.9%, Taiwan's Weighted index tumbled 1.95%, Thailand’s SET Composite shed 0.95%, and Jakarta Composite in Indonesia slipped 0.5%.

Japan’s benchmark index Nikkei 225 ended 0.15% higher, followed by the Straits Times Index in Singapore, which rose 0.12%.

Meanwhile, European markets edge lower in opening trade amid concerns about the ongoing Russia-Ukraine conflict. Germany’s DAX fell 1.8% and the U.K.’s FTSE 100 index dropped 1% in early deals. France’s CAC index slid 1.9%, while Spain’s IBEX 35 shed 0.76%.