Bulls demonetised on Dalal Street

There was no respite for the battered bulls as mayhem continued on D-Street for the second day on Tuesday.

The BSE Sensex crashed 509.04 points, or 1.34%, to close at a one-month low of 37413.13 as investors spooked by falling rupee, trade war concerns and soaring crude prices dumped equities.

The barometer has lost 976.69 points in the last two sessions.

The index opened on a positive note, but bears gained control soon on heavy selling in FMCG, metal, auto and financial stocks.

The broader Nifty too opened on a positive note, but tanked 150.60 points, or 1.32%, to close at 11287.50.

From their lifetime highs hit on August 28, the Sensex and Nifty have lost 1,483.5 points and 451 points, respectively.

FIIs sold shares of Rs 1,454.36 crore on Tuesday while the domestic institutional investors (DII) bought shares worth Rs 749.62 crore on a net basis.

"The market sentiment has been soured on the rupee depreciation, rising bond yields and crude being at the elevated levels. The market has seen a very fast and furious rally in the last month. Some correction will encourage people sitting on the sidelines to enter markets with better valuations and price points in the coming days," Devang Mehta, head of equity advisory at Centrum Wealth Management, said.

The broader market continued to fall as BSE Midcap and Smallcap indices slipped 1.36% and 1.37%, respectively.

"Nifty has formed a Bearish Belt Hold candle on a daily scale, which suggests that bears are holding the tight grip and selling pressure is seen at every small bounce move. Now till it holds below 11380 zones it may remain under pressure and could drift towards previous swing high of 11171 zones while on the upside, hurdles are seen at 11333 then 11380 zones," Motilal Oswal Securities said in a note.

"The threat of trade tariffs, the outflow of foreign funds and concern on domestic macros will influence investors to stay on a cautious note," Vinod Nair, head of research at Geojit Financial Services, said in a note.

All the 19 sectors gauges compiled by BSE ended negative with consumer durables falling the most at 2.47% followed by FMCG (2.25%), Telecom (2.20%), Realty (1.78%) and Basic Materials (1.67%).

"Index is very cautious at this point of time. We have already seen 3% correction in the last two sessions and more 2-3% correction may happen in the coming days," Siddhartha Khemkar, head-retail research at Motilal Securities said.

Sensex has gained 5,083.88 points till its peak on August 28 while Nifty gained 451 points. On Tuesday, investors lost Rs 2.17 lakh crore while they have lost Rs 4.14 lakh crore in past two trading sessions. The market capitalisation was Rs 157.4 lakh crore on September 7, which fell to Rs 155.4 lakh crore on September 10.

"Current account deficit is a major concern right now. The foreign institutional investors selling is happening across emerging markets due to rising interest rates in developed economies and weakness in emerging currencies," Khemkar said.

Foreign portfolio investors have pulled out $700 million so far this month and from January $6 billion. The current account deficit (CAD) is also a five-year low also pushed the rupee to hit 72.69/$ on Tuesday.

Tata Steel, Power Grid, Hero MotoCorp, Tata Motors and ITC were the worst performing stocks on Sensex kitty falling as much as 3.46%.

HDFC Bank lost more than 2% and HDFC 0.68%, while Bharti Airtel, YES Bank, ICICI Bank, Adani Ports, Kotak Bank, TCS, Vedanta Ltd, RIL, Sun Pharma, SBI, L&T, ONGC, Wipro, IndusInd Bank and Axis Bank fell up to 3%.

Globally, in the Asian region, Hong Kong's Hang Seng ended down 0.71%, China's Shanghai Composite index shed 0.18% and Singapore fell 0.35%. Japan's Nikkei, however, ended 1.30% higher. In the Eurozone, Frankfurt's DAX fell 0.53% and Paris down 0.19% in their late morning trade. London's FTSE too fell 0.57%.

TAKING A PLUNGE

Tata Steel, Power Grid, Hero MotoCorp, Tata Motors and ITC were the worst performing stocks in Sensex pack, falling as much as 3.46%