An Evening Walk Down Dalal Street, 18th Sep 2018

Bearish momentum continued on D-Street for the second consecutive day on Tuesday as a sharp selloff in the last hour dragged the market. The Nifty breached 11,300-mark and ended below it, while the Sensex closed around 300 points lower.

Investors turned wary of multiple factors such as US imposing tariffs on USD 200 billion worth of Chinese goods and services late on Monday.

Back home, banking names were he big laggards after the government proposed a merger between Bank of Baroda, Vijaya Bank and Dena Bank. As a result, PSU banks took a hit as traders placed mixed bets in names in this space.

Crude prices weighed on the market as well as traders reacted to statements from Saudi Arabia. Multiple news agencies reported that Saudi is comfortable with Brent crude prices hovering above USD 80 per barrel.

Adding to the pain was a weakening rupee, which fell to 72.75 per US dollar when the market came to a close.

The day began on a negative note, with investors reacting to tepid global cues as well as banking developments in India. Indices remained rangebound through the day, but it was the selloff in the last hour that impacted D-Street.

At the close of market hours, the Sensex ended lower by 294.84 points or 0.78% at 37290.67, while the Nifty fell 98.90 points or 0.87% at 11278.90. The market breadth is negative as 879 shares advanced, against a decline of 1,775 shares, while 178 shares were unchanged.

Shares of Hindustan Unilever and Yes Bank were the top gainers, while State Bank of India, Tata Motors, and Indiabulls Housing lost the most.