Equity benchmarks Sensex and Nifty logged their third straight session of losses on Tuesday as jittery investors braced for key events like US Fed policy, Union Budget and US-China trade talks. After gyrating over 350 points, the BSE Sensex ended 64.20 points lower at 35,592. While, the NSE Nifty edged lower by over 9 points to close at 10,652.
The 30-share Sensex has lost over 600 points in the last three sessions. Meanwhile, global shares were positive with key Asian bourses winessing mixed trading activities and Europe opening higher.
On the global front, the focus will be on the US Federal Reserve's policy meeting on Thursday and developments around the Brexit deal. Back home, investors are keenly awaiting the upcoming interim Union Budget on February 1 amid expectations of some populist announcements, which analysts believe may derail the government from fiscal consolidation path.
"Market opened on a negative note due to uncertainties surrounding the global market and upcoming US Fed policy. However, towards the closing, market managed to recoup some of the losses supported by strengthening rupee and short-covering ahead of F&O expiry. Market is not completely out of the wood as volatility may extend in the coming days due to interim budget and election-led uncertainty," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said. Among the Sensex pack, Yes Bank, L&T, HDFC, RIL, HDFC Bank, PowerGrid and Coal India were the biggest losers -- falling up to 2.43 per cent.
Other laggards were Kotak Bank, ONGC, Mahindra and Mahindra, SBI, Tata Steel and Infosys. Among the top gainers were Sun Pharma, rallying 2.61 per cent. It was followed by Bajaj Finance, TCS, Asian Paints, ITC, HCL Tech -- rising up to 2.61 per cent.
During the day, the 30-share Sensex touched an intra-day high of 35,734.14 and dipped to a low of 35,375.51. It finally settled with a loss of 64.20 points, or 0.18 per cent, at 35,592.50. While, the broader NSE Nifty settled 9.35 points, or 0.09 per cent, down at 10,652.20.
On a net basis, foreign portfolio investors (FPIs) purchased shares worth a net of Rs 223.44 crore Monday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 92.32 crore, provisional data available with BSE showed. The rupee, meanwhile, was trading flat against US dollar at 71.09.
The crude benchmark Brent futures rose 1.05 per cent to USD 60.44 per barrel. According to analysts, global investor sentiment turned jittery after the US charged Chinese telecom giant Huawei with a series of crimes including stealing trade secrets, a move that can escalate hostilities between the world's biggest economic powers and complicate efforts to negotiate an end to their bruising trade war.
However, the White House Monday denied that there was any link between the two. Fair and reciprocal trade with China will boost the long-term economic growth not only of the United States, but also globally, the White House said announcing President Donald Trump will welcome an official delegation from China for a series of meetings later this week to discuss the trade relationship between the two countries.
Elsewhere in Asia, Hong Kong's Hang Seng slipped 0.16 per cent and Shanghai Composite Index shed 0.10 per cent; while Korea's Kospi rebounded 0.28 per cent and Japan's Nikkei was up 0.07 per cent. In the eurozone, Frankfurt's DAX was up 0.01 per cent, while Paris CAC 40 rose 0.42 per cent in late morning deals. While, London's FTSE jumped 1.12 per cent.
On Wall Street, Dow Jones Industrial Average ended 0.84 per cent lower on Monday.