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On the second trading day of the week, the effect of recession was once again seen in the Indian stock markets. The domestic stock market closed in the red amid weak global cues and rising crude oil prices. Bombay Stock Exchange (BSE)’s main index Sensex closed at 77,235.46 with a decline of 492.70 points or 0.63 percent. At the same time, Nifty of National Stock Exchange (NSE) slipped 132.75 points or 0.55 percent to the level of 24,154.90.

Sellers dominated from the beginning of trading

Tuesday’s session itself started with a dull and negative mood. Sensex opened with a weakness of 309 points at 77,418, while Nifty opened 63 points down at around 24,223. As the day progressed, the scope of decline in the market increased and by the afternoon the Sensex had fallen by more than 400 points. By the end of trading, the market seemed to be struggling with this recovery and investors had to suffer huge losses.

Condition of major Sensex shares

Out of 30 Sensex stocks, shares of 22 companies closed in the red, while only 8 stocks registered a rise. During this period of selling, shares of Asian Paints and Infosys fell heavily by more than 2 percent. Apart from this, pressure was clearly seen on the shares of HCL Tech, Bharti Airtel and TCS. On the other hand, there was buying trend in some selected stocks like Axis Bank, Power Grid, Mahindra & Mahindra, Bajaj Finance and L&T, which provided some support to the market.

Impact of global signals and crude oil

The main reasons behind this slowness of Indian markets were the turmoil on the global front. Asian markets witnessed a mixed trend, where South Korea’s Kospi strengthened, but Japanese and other markets remained weak. Moreover, the rise in crude oil prices increased investors’ concerns. Brent crude futures rose above $91 per barrel, deepening fears of imported inflation and fiscal deficit. The growing geopolitical tension between America and Iran and the pause in ceasefire discussions have also affected the sentiment of global investors.