Domestic stock markets swung between gains and losses after opening on a flat note on Tuesday. At 12:09 pm, the S&P BSE Sensex rose 42.79 points or 0.11 per cent to trade at 38,355.31. The broader Nifty50 fell 8.70 points or 0.08 per cent to trade at 11,573.65. The benchmark indices turned choppy today on foreign fund outflows, surging global crude oil prices and weak rupee amid negative global cues. According to analysts, the rupee falling to a new low of 71.37 per dollar on Tuesday weighed down the investor sentiments. According to them, heavy selling was witnessed in banking, FMCG and metal stocks.
Main losers on Sensex pack in the morning session were SBIN (-0.42%), Maruti (-0.44%), YES Bank (-0.46%), Coal India (-0.50%), ITC (-0.61%) and Hindustan Unilever (-0.97%). Main laggards on Nifty pack were Ultracemco (-1.14%), Hindustan Petroleum (-0.89%), Bharti Airtel (-0.53%), ITC (-0.49%) and BPCL (-0.42%).
Sentiment remained weak on sustained capital outflows by foreign funds after an investor lobby group named AMRI (Asset Management Roundtable of India) said on Monday that the immediate impact of the new Sebi KYC norms, if not amended, would flush out &75-billion FPI investment from the country within a short time-frame. The organisation also warned that it would have severe impact on stocks and rupee.
However, taking strong objection to these claims, Securities and Exchange Board of India (Sebi) on Tuesday said in a early morning statement, "It is preposterous and highly irresponsible to claim that 75 billion dollars of FPI investment will move out of the country because of Sebi's circular issued in April 2018."
Asian shares also fell in early trade on Tuesday, amid growing concerns over escalating international trade disputes and as emergency austerity measures in Argentina highlighted turbulence in emerging markets.
In commodities markets, oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November, but gains were limited by higher supply from OPEC and the United States.
On the other hand, major gainers in the 30-share Sensex pack in the session were Wipro (+1.18%), Tata Motors (+1.05%), Mahindra & Mahindra (+1.01%), TCS (+0.63%), Infosys (+0.56%) and NTPC (+0.53%). Tech Mahindra (+1.60), Tata Motors (+1.48%), Wipro (+1.38%), Lupin (+0.87%) and Infosys (+1.86%) led the pack of Nifty gainers.
Meanwhile, on Monday, benchmark equity indices reversed gains to finish sharply lower. The S&P BSE Sensex dropped 332.55 points to close at 38,312.52. The broader Nifty50 slipped 98.15 points to settle at 11,582.35. (With agencies inputs)