Sensex Falls Over 150 Points, Nifty Below 11,900

Domestic stock markets inched lower on Tuesday after a positive start, led by losses in information technology stocks, as investors locked in profits in overbought shares towards the year end. The S&P BSE Sensex index fell as much as 157.15 points to hit 40,330.28 on the downside, and the broader NSE Nifty benchmark declined to as low as 11,890.75, down 46.75 points from the previous close. Analysts expect some volatility to continue in the near term till more clarity emerges on the monetary policy front. 

At 11:49 am, the Sensex traded 91.61 points - or 0.23 per cent - lower at 40,395.82 while the Nifty was down 25.30 points at 11,912.20.

Only sixteen stocks on the Nifty 50 index at the time traded higher. Top laggards were Zee Entertainment Enterprises, GAIL, Bharti Infratel, Tata Consultancy Services (TCS) and IndusInd Bank, down between 1.68 per cent and 2.76 per cent each.

TCS, Reliance Industries and ITC were the top drags on the Sensex.

Market breadth favoured losses, with 770 stocks on the BSE trading higher and 1,309 moving lower. On the NSE, 571 stocks advanced while 1,092 declined and 472 remained unchanged.

The government is due to release data on consumer inflation and industrial production after market hours on Thursday.

Global rating agency Moody's said on Monday that pressure on Indian finance companies continues to build up, with some banks heavily exposed to non-bank credit providers.

Meanwhile, equities in other Asian markets edged lower as investors refrained from making major bets before December 15, when the next round of US tariffs on Chinese imports is due to take effect.

MSCI's broadest index of Asia-Pacific shares outside Japan was seen trading down 0.04 per cent as the Asian trading day began on Tuesday. Japan's Nikkei index lost 0.23 per cent.

A Chinese Commerce Ministry official said on Monday that Beijing hopes to make a trade deal with Washington as soon as possible before new US tariffs are due to kick in this weekend.

On Monday, the S&P BSE Sensex index had ended 42.28 points - or 0.10 per cent - higher at 40,487.43 and the broader NSE Nifty benchmark settled at 11,937.50, up 16.00 points - or 0.13 per cent - from the previous close.