Benchmark indices Sensex and Nifty tumbled more than 1% on September 20 due to heavy selling in banking and oil stocks in tandem with weak global trends ahead of the US Federal Reserve’s interest rate decision.
Falling for the second day running, the 30-share BSE Sensex tumbled 796 points or 1.18% to settle at 66,800.84. During the day, it tanked 868.7 points or 1.28% to 66,728.14.
The NSE Nifty declined 231.90 points or 1.15% to end below the 20,000 mark at 19,901.40.
U.S. bond yields surging to 16-year high levels and fears of high crude oil prices fuelling commodity inflation also hit the investor sentiment, according to analysts.
Also read: Rupee gains on RBI intervention, easing oil prices
Fresh foreign fund outflows and caution ahead of a host of interest rate decisions from global central banks also added to the overall bearish trend. Besides the U.S. Fed meeting, the BoE (Bank of England) and the BoJ (Bank of Japan) are also scheduled to meet this week.
Among the Sensex firms, HDFC Bank emerged as the biggest loser, falling 4%. JSW Steel, Reliance Industries, UltraTech Cement, Maruti, Tata Steel, Wipro, Tech Mahindra, Bharti Airtel and Larsen & Toubro were the other major laggards.
Power Grid, Asian Paints, Sun Pharma, Axis Bank, NTPC, ITC and Infosys were among the gainers.
In Asian markets, Tokyo, Shanghai and Hong Kong ended lower while Seoul settled with gains.
European markets were trading in positive territory. The U.S. markets ended in negative territory on Tuesday.
Global oil benchmark Brent crude fell 1.23% to $93.18 a barrel even as supply concerns remain due to production cuts announced by Saudi Arabia and Russia.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,236.51 crore on Monday, according to exchange data. Equity markets were closed on Tuesday on account of Ganesh Chaturthi.
Snapping its 11-day rally, the BSE benchmark fell 241.79 points or 0.36% to settle at 67,596.84 on Monday. The broader Nifty declined 59.05 points or 0.29% to end at 20,133.30.