Weak opening of the European markets during mid-session also dampened the sentiments.
Weak opening of the European markets during mid-session also dampened the sentiments.
However, buying demand among select auto and IT shares limited the downside pressure in trades today.
The 30-share Sensex ended lower by 58.09 points at 27,306.83 and the 50-share Nifty closed 13.40 points lower at 8,261.65.
The broader markets, however, outperformed the benchmark indices- BSE Midcap and Smallcap indices gained between 0.2-0.5%.
Market breadth ended marginally positive with 1,419 gainers and 1,326 losers on the BSE.
In the currency front, the Indian rupee trimmed early gains and was trading lower at 64.93 to the US dollar compared to the previous close of 64.81.
Meanwhile, Standard & Poor’s (S&P) has retained India’s rating at ‘BBB-’ with stable outlook, the lowest investment grade for India thus dashing the government’s hope for a rating upgrade for at least for two years — this year and the next.
However, dismissing Standard and Poor's cautious remarks on the Indian economy as a mere "point of view", the Finance Ministry said GDP will expand by over 7.5 per cent in the current fiscal and more reforms measures would be taken by the government to push growth.
Further, foreign institutional investors were net buyers in equities to the tune of Rs 898 crore on Monday, as per provisional stock exchange data.
MARKET VIEW
According to Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services, “Nifty managed to cross above the resistance zone of 8,225 and inch closer to the 8,300 mark, and in the event scaling above its 200 Day EMA. Bank Nifty too crossed above the 17,700 (200 Day EMA) and rallied closer to 18,000. The results season bringing in a mixed bag of sorts added to volatility that kept upward gains in check.
She further adds, "Traders are advised to keep a trailing stop loss of 8,225 for longs initiated closer to 8,050-8,068 zone for an earlier target of 8,225. Watch 8,225 Nifty (spot) for sustenance for the next leg towards 8,530 to unfold with some resistance near the 8,380 mark (200 Day SMA). Bank Nifty stop loss can be trailed to 17,700 for a move towards 18,586 once the Daily Double top of 17,950 is taken out."
GLOBAL MARKETS
European shares fell for the first time in four days on Tuesday and the euro kicked away from a 10-day low as solid euro zone bank lending data cooled expectations of another jolt of European Central Bank stimulus this week.
The 0.5% decline in the pan-European FTSEurofirst 300 index took the shine off stocks after Chinese shares neared a two-month high as the market's recent recovery continued.
The dollar meanwhile fell for the first time in four days as the euro and the Canadian dollar, which had been knocked overnight by a shock majority election victory for the country's Liberal party, both rebounded.
The quarterly lending data from the ECB ahead of its meeting on Thursday was the principal driver for the euro's bounce, and for the turnaround in Europe's stocks and bonds after what had been a positive start.
SECTORS & STOCKS
BSE Metal, Realty and IT indices plunged between 0.6-1.5%. However, BSE Power, IT and Consumer Durables indices were up 0.6-1.4%.
The top losers from the Sensex pack included Vedanta, Cipla, M&M, Hindalco, Tata Steel, Bajaj Auto, ONGC and Coal India.
Vedanta expects its iron ore exports from Goa to be much higher than its permitted mining capacity of 5.5 million tonnes in the fiscal year to March, as it bids for ore in government-run auctions. Shares of Vedanta fell by over 6%.
Tata Steel, the biggest steelmaker in Britain, said on Tuesday that its planned restructuring is expected to lead to about 1,200 job losses. Shares of Tata Steel slipped by 3%.
Tractor and utility vehicle market leader Mahindra & Mahindra (M&M) announced on Monday that it has forayed into pulses retailing under the brand ‘NuPro’ with a launch price of tur at Rs 210 a kg against the prevailing price range of Rs 180 and Rs 220 a kg. M&M dipped by 2.2%.
The foreign investment arm of India's top oil explorer ONGC is targeting $10-$12 billion of oil and gas asset purchases over the next three years, including more corporate acquisitions, its managing director said. Shares of ONGC slipped by over 1.5%.
The government has for the third time extended deadline for appointment of merchant bankers for the mega Rs 21,000-crore share sale in Coal India after global investment banks flagged concerns over the company allegedly not meeting green commitments. Coal India plummeted by almost 1%.
Shares of Hero Moto were trading marginally lower ahead of second quarter earnings.
ICICI Bank, India’s largest private sector lender, has outpaced its peers to record the highest number of mobile banking transactions. The scrip slipped marginally.
On the gaining side, Tata Motors, TCS, NTPC, Maruti Suzuki and Infosys gained between 1-2%.
TataMotors-ownedJaguarLand Rover today said it will launch the updated version of its luxury sports utility vehicle 'Range Rover Evoque' in India next month and has started taking the bookings.
Shares of power generation companies such as Reliance Power, Torrent Power and Adani Power were in focus and rallied by over 5% each in otherwise subdued market.
According to Moody’s Investor Service, Indian power producers’ consumption of costly imported coal has fallen thanks to a sharp increase in domestic coal production, a credit positive.
Among other shares, Deep Industries gained around 4%, after foreign fund house Swiss Finance Corporation (Mauritius) Ltd has bought stake in the company from the open market.
Q2 RESULTS IMPACT
Shares of Adani Transmission soared 20% after the company reported a consolidated net profit at Rs 153 crore for the quarter ended September 30, 2015.
Bajaj Finance gained almost 6% after the company reported 42% growth in standalone net profit at Rs 279.4 crore for the quarter ended September 2015 compared with Rs 197 crore in the corresponding quarter last fiscal.
BASF India dipped over 9% at Rs 949, also its 52-week low on the BSE, after reporting a net loss of Rs 58.70 crore for the quarter ended September 30, 2015 (Q2).
Motilal Oswal Financial Services rallied 12.5% after reporting strong 33% year-on-year growth (YoY) in consolidated profit at Rs 43.4 crore for the quarter ended September 30, 2015 (Q2).
Gati dipped 7% after the company reported 16% year on year (YoY) drop in consolidated net profit at Rs 5.79 crore for the quarter ended September 30, 2015 (Q2).
Kajaria Ceramics gained almost 3% after posting a 47.79% increase in consolidated net profit at Rs 58.75 crore for the quarter ended September 30, 2015.