Sensex slips 127 points to close at 40,675, Nifty ends below 12,000-mark; Yes Bank, Tata Steel among top losers

  • The 30-share BSE gauge settled at 40,675.45, down 0.31 percent or 126.72 points

  • The index swung between a high of 40,885.03 and a low of 40,554.04 during the day

  • The broader NSE Nifty settled at 11,994.20, showing a dip of 0.45 percent or 54 points

Mumbai: Benchmark stock indices Sensex and Nifty on Tuesday fell in line with subdued Asian markets after the US decision to slap tariffs on imports from Brazil and Argentina opened a new front in global trade war.

The 30-share BSE gauge settled at 40,675.45, down 0.31 percent or 126.72 points. The index swung between a high of 40,885.03 and a low of 40,554.04 during the day.

The broader NSE Nifty settled at 11,994.20, showing a dip of 0.45 percent or 54 points.

In view of fresh tussle in global trade, metal stocks came under pressure. Besides, banking stocks saw selling pressure as investors took a cautious stance ahead of the RBI monetary policy meet outcome on December 5.

On the Sensex chart, Yes Bank was the worst hit with 7.81 percent decline. It was followed by Tata Steel, Vedanta, M&M, IndusInd Bank and Tata Motors -- shedding as much as 5.07 percent.

On the other hand, Bajaj Auto, TCS, Kotak Bank, Infosys and HDFC were among the major gainers.

Sectorally, metal index bore the brunt of global trade tussle and tumbled 2.67 percent. Other top losers were basic materials (1.94 percent), telecom (1.76 percent), industrials (1.53 percent), utilities (1.24 percent), capital goods (1.18 percent), oil & gas (0.86 percent) and FMCG (0.68 percent).

 Sensex slips 127 points to close at 40,675, Nifty ends below 12,000-mark; Yes Bank, Tata Steel among top losers

Representational image. Reuters.

On the other hand, realty index tops the gainers' chart with 1.36 percent rise, followed by IT (0.59 percent), consumer durables (0.09 percent) and teck (0.16 percent).

Of the 19 sectoral indices, 15 closed in the red and 4 ended in the green.

In the broader market, large cap, small cap and midcap indices underperformed the benchmark Sensex.

Midcap index dropped 0.95 percent, smallcap 0.74 percent and largecap 0.51 percent.

"Domestic markets remained muted on account of downbeat global sentiments after US reinstated tariffs on Argentina and Brazil and threatened even harsher penalties on dozens of popular French products" said Paras Bothra, President of Equity Research, Ashika Stock Broking.

Stoking more worries, China announced sanctions against several US non-government organisations for encouraging protesters to "engage in extremist, violent and criminal acts" and said it would now allow US military ships and aircraft to visit Hong Kong, he said.

These developments are likely to have a negative impact on chances of a fruitful dialogue between the US and China over trade deal.

Back home, the Reserve Bank of India (RBI) is expected to cut interest rates on December 5, experts believe.

On the currency front, the Indian rupee ended almost flat against the US dollar.

Foreign institutional investors sold shares worth Rs 1,731.33 crore in the capital market in the previous session, while domestic institutional investors bought equities worth 753.99 crore, data available with stock exchange showed.

Brent futures, the global oil benchmark, surged 0.54 percent to $61.25 per barrel.

Asian markets slipped on Tuesday as global trade tensions resurfaced after the US decision to reimposed tariffs on the two South American countries.

Bourses in Hong Kong, Tokyo and Seoul settled in the negative terrain, while Shanghai finished with marginal gains.

In early trade, London slipped 0.1 percent, while Frankfurt was up 0.7 percent and Paris rose 0.2 percent.

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Updated Date: Dec 03, 2019 17:40:58 IST