The Sensex fell over 100 points while Nifty slipped closer to 10,200 amid weak global markets. Both Sensex and Nifty had ended 1 per cent lower yesterday, marking their fifth straight session of decline. Weak global markets and concerns over the domestic banking sector has hurt the market sentiment. Banking and metal stocks led the losers today, with BSE banking index down over 1 per cent. Among Nifty50 stocks, SBI fell over 1 per cent while ICICI Bank slipped nearly 3 per cent. Aurobindo Pharma, Tata Steel and Sun Pharma were among the other major losers.
On the other hand, IT stocks provided some support to the markets, capping the losses. HCL Tech, TCS and Tech Mahindra were up over 1 per cent.
Global stocks and the dollar fell today after a key advocate for free trade in the White House announced his resignation, fanning fears President Donald Trump would go ahead with tariffs and risk a trade war. White House economic adviser Gary Cohn, seen as a bulwark against protectionist forces within the Trump administration, said on Tuesday he was leaving.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.25 per cent. Australian stocks fell 0.75 percent and Japan's Nikkei retreated 0.2 percent.
Cohn's resignation, however, poured cold water on a recovery in risk appetite in wider markets that followed news of the inter-Korean talks.
"The worst outcome for financial markets, in terms of potential to create volatility, would be a confirmation of rising trade friction and benign neglect of the dollar in the short term," said analysts at ANZ.
Crude oil prices fell as investor risk appetite in the broader markets cooled, with Brent futures surrendering the previous day's gains to drop 0.85 per cent to $65.24 per barrel.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.