Market Wrap: Sensex 376 pts, Nifty below 26,200 as HDFC Bank, Reliance drag Dalal Street lower

Indian equities ended lower on Tuesday, with the Sensex and Nifty retreating from record-adjacent levels as heavyweight stocks HDFC Bank and Reliance Industries weighed on benchmarks and investors booked profits after a recent rally.

The BSE Sensex fell 376.28 points, or 0.44%, to close at 85,063.34, while the NSE Nifty 50 declined 71.6 points, or 0.27%, finishing the session at 26,178.70.

On the 30-stock Sensex, shares of Trent, Reliance Industries, ITC, Kotak Mahindra Bank and InterGlobe Aviation led the decline, sliding between 2% and 9% and exerting the most pressure on the benchmark.


HDFC Bank and Reliance Industries, the two heaviest constituents on the index, fell 1.5% and 4.3%, respectively, amplifying losses on the benchmarks.

Reliance’s drop followed the company’s statement that it does not expect Russian crude deliveries in January, after U.S. President Donald Trump warned that Washington could raise tariffs on India over its oil purchases.

ICICI Bank climbed 2.9% and helped lift the financials index by 0.3%, as investors bet on an improvement in credit growth and sector earnings in the December quarter.

Shares of apparel retailer Trent plunged 8.6% on the day, as concerns over intensifying competition in the retail segment weighed on sentiment.

Expert views

Technically, after an early morning intraday rally, the market registered profit booking again at higher levels, said Shrikant Chouhan, Head Equity Research at Kotak Securities, adding that today, profit booking continued at higher levels.

"We are of the view that the intraday market formation is still on the weaker side, but a fresh selloff is possible only after the breach of 26,100/84800 Below this level, the market could slip to 26,000-25,950/84500-84350. On the flip side, 26,250/85300 would be the immediate resistance zone for the bulls. Above this, the market could bounce back up to 26,350-26,380/85500-85700," said Chouhan.

Global Markets

Asian equities pushed deeper into record territory on Tuesday, picking up momentum from Wall Street, where gains in energy and financial shares lifted the Dow Jones Industrial Average to an all-time high.

MSCI’s broadest index of Asia-Pacific shares advanced 1.1% to a fresh peak, led by Japanese stocks, with the Topix rising 1.6% to a record close. Taiwan’s Taiex added 1% and South Korea’s Kospi gained 0.7%, with both benchmarks also notching new highs.

Markets in greater China joined the rally. Hong Kong’s Hang Seng climbed 1.8%, while mainland blue-chip stocks jumped 1.2%.

In Europe, Euro Stoxx 50 futures pointed 0.2% higher after the Stoxx 600 closed at a record on Monday. U.S. equity futures were little changed but firm, with S&P 500 futures up 0.1% after a 0.6% advance in the cash index overnight, buoyed in part by a more than 5% surge in Chevron shares.

Crude impact

Oil prices inched higher on Tuesday as investors balanced expectations of ample global supply this year against fresh uncertainty over Venezuelan crude output following the U.S. capture of President Nicolas Maduro.

Brent crude futures rose 0.5%, or 30 cents, to $62.06 a barrel by 0930 GMT, while U.S. West Texas Intermediate gained 0.4%, or 25 cents, to $58.57 a barrel.

Rupee vs Dollar

The Indian rupee edged higher on Tuesday, closing 0.1% stronger at 90.1650 against the dollar, ending a four-session losing streak as dollar selling by state-run banks and foreign lenders lent modest support to the local currency.

Regional cues were mixed. The dollar index extended its pullback from Monday, while most Asian currencies traded in narrow ranges, offering limited direction to the rupee.

(with inputs from agencies)