The BSE Sensex fell 28.29 points to end at 27,932.90 in a volatile trade on Tuesday. NSE Nifty shed 5.55 pts to close at 8,454.10.
Auto, bank and realty stocks were worst hit after retail inflation data dampened hopes of an interest rate cut by the Reserve Bank of India next month.The fall in June wholesale price inflation also failed to boost the sentiment, but they cushioned the fall.
The Sensex touched a high of 28,018.59 points and a low of 27,853.96 points in the intra-day trade.
Shares of India Cements saw huge selling pressure on Tuesday and closed 3.66 per cent down after its franchisee Chennai Super Kings was suspended from IPL for a period of two years.
Stocks of Tata Motors also declined on Tuesday and ended 4.10 points down on continued worries over slowing sales in China.
Prices of oil extracting companies, Aban Offshore and Dolphin Offshore surged 15.6 per cent and 8 per cent, respectively, in the day.
Globally, Brent crude tumbled almost 2 per cent and was trading below $57 a barrel level.
In overseas markets, European stocks were trading lower, with energy shares falling after Iran reached a historic nuclear deal.
Key indices in France, Germany and the UK fell in the range of 0.03 per cent to 0.46 per cent.
Credit Suisse downgraded Indian equities to 1 per cent “underweight” from 1 per cent “overweight” in its Asian portfolio, saying it was a tactical move based on valuations.
What experts say about stock markets performance today
Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
The CPI numbers for June was much above the consensus impacting rate sensitive stocks. A large part of this increase is due to food inflation, the final outcome of which will depend to further monsoon outcome. Currently, as per IMD, the outcome for July is likely to be below normal. Having said that, international prices of both soft and hard commodities continues to be low and should not exceptionally impact general inflation. The overall market undertone continues to be healthy with a shift towards defensive stocks like IT and FMCG.
Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
It is uncertain if the Greece crisis had built in so much premium into Indian markets, to warrant the upmoves on its own, in the last two days. The rise, however, supports the argument that buyers are waiting on the side lines, looking for cues to enter Indian markets. CPI’s rise does not offer the markets much to cheer about it, but it is not at a panic level, especially in the back drop of RBI’s June monetary policy hinting at the headline figure moving up in the coming months. However, with Greece crisis approaching resolution, investors are likely to weigh in the possibility that overall economic prospects of the Euro region, and with it, the prospects of US rate hike looks to have improved.
Gaurav Jain, Director, Hem Securities
Markets closed on a weak note as news from macro front is not supportive. Retail inflation accelerated to 5.4 per cent in June, the highest in the last 4 months. Food prices are the main culprit. June WPI inflation has been negative for the seventh consecutive month, coming in at negative 2.4 per cent in June against negative 2.36 per cent in May.