MARKETS: Sensex erases gains, ends 262 pts lower; banks, metals, FMCG drag

Erasing all its morning gains, the domestic equity market ended in the negative territory on Tuesday amid selling in banks, metals and FMCG counters.

Shares of state-run banks dropped with Nifty PSU Bank index hitting an over 13-year low on the National Stock Exchange (NSE) on concerns over asset quality. Among individual stocks, State Bank of India (SBI) hit a 52-week low of Rs 168.80 apiece. The stock ended at Rs 171.40 on the NSE, down over 4 per cent. READ MORE

At the index level, the S&P BSE Sensex slipped 262 points or 0.83 per cent to end at 31,453.51, with SBI being the top loser and M&M (up over 3 per cent) the top gainer. NSE’s Nifty lost 88 points or 0.95 per cent to settle at 9,205.60 levels.

All the sectoral indices on the NSE ended in the red. Nifty Bank fell 472 points or 2.39 per cent to 19,272, while Nifty FMCG slipped 1.67 per cent to 27,138.60 levels. Nifty Pharma dropped nearly 2 per cent to 9,181.50 levels and Nifty Metal dived over 1 per cent to 1,693.65 levels.

In the broader market, both S&P BSE MidCap and S&P BSE SmallCap indices dropped nearly a per cent each to 11,391.21 and 10,649.61 levels, respectively.

Global Markets

Asian stocks rose on Tuesday, tracking a late Wall Street rally as governments eased coronavirus lockdowns while oil extended gains on expectations fuel demand would begin to pick up.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.84 per cent. The gains were led by Australia’s ASX 200, which rose 1.42 per cent. Hong Kong’s Hang Seng climbed 0.84 per cent.

European stocks also gained as a jump in shares of French energy major Total and a slew of positive earnings reports added to optimism over the easing of lockdowns by major economies.

In commodities, oil prices jumped again on hopes for a recovery in vehicle traffic and fuel demand, as some US states and countries in Europe and Asia start to ease coronavirus lockdown measures.

(With inputs from Reuters)

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