Equity benchmark indices fell in early trade on Tuesday in line with weak Asian markets and continuous foreign fund outflows.
The 30-share BSE Sensex fell 98.14 points to 65,925.55. The Nifty declined 18.75 points to 19,655.80.
Among the Sensex firms, Asian Paints, Kotak Mahindra Bank, Tech Mahindra, Tata Consultancy Services, Infosys and Axis Bank were the major laggards.
Tata Steel, UltraTech Cement, Larsen & Toubro and Bharti Airtel were among the gainers.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading lower.
The U.S. markets ended in the positive territory on Monday. Global oil benchmark Brent crude declined 0.45% to $92.87 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,333.03 crore on Monday, according to exchange data.
“Bearish sentiment across the Asian markets could drag down local shares in early Tuesday trade. FII selling in the current month so far has precipitated the fall, with rising U.S. dollar index and treasury yields coupled with higher crude oil prices further dampening the sentiment.
“Renewed worries over major central banks resorting to likely rate hikes to rein in inflation are making investors jittery about the sluggish demand and slowdown in growth going ahead,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said in his pre-opening market comment.
The BSE benchmark had eked out a marginal gain of 14.54 points or 0.02% to settle at 66,023.69 on Monday. The broader Nifty ended marginally up 0.30 points at 19,674.55.