A morning walk down Dalal Street | Bears may cover their shorts ahead of Thursday; IIP, CPI in focus

After a manic Monday, we witnessed a terrible Tuesday. Indian markets plunged for second day in row. The S&P BSE Sensex plunged by nearly 1,000 points in just trading sessions while the Nifty50 broke below 11,300 levels.

Sensex sees its biggest fall in six months. 

Over 150 stocks hit fresh 52-week low on the BSE which include names like Sun TV, BPCL, GIC Housing Finance, HPCL, DB Corp, Aptech, and Castrol India.

The consistent sharp fall in rupee and widening current account deficit (CAD) on rising crude oil prices also added pressure to Indian markets. Investors across the globe remain cautious of ongoing trade war concerns and turmoil in emerging markets. 

Indian rupee ends at record closing low of 72.69/$ amid oil surge, trade concerns.

Investors will also watch for macroeconomic data such as IIP, CPI which will be announced later in the day. 

The index is approaching its critical supports between 11200, 11100, 11050 levels.

Experts say that bears might cover their shorts ahead of Thursday’s holiday. 

On the upsides, it is important for Nifty to close above 11480 for bulls to take control.