Benchmark indices BSE Sensex and NSE Nifty snapped four day winning streak on Tuesday with the 30-share index dropping 378.61 points to end at 23,410.18. NSE Nifty settled the day 125 points down at 7,109.
Below are the five factors that moved the stock markets today:
1) Profit-booking: Domestic equity markets registered their biggest weekly rally last week so far in 2016. In the past four trading sessions, BSE Sensex climbed 2.5 per cent to 23,788.79 on February 22. According to market experts, profit booking dragged the benchmark index down over 300 points in the afternoon trade.
2) Weak Asian markets: On the global front, Asian shares retreated from a seven-week high on Tuesday. Hang Seng, Nikkei and Shanghai were down by 0.25 per cent, 0.37 per cent and 0.81 per cent, respectively.
For stock market coverage click here
3) Falling crude oil price: Oil price rally that boosted global equity markets on reversed on Tuesday. Oil prices rose on Monday as a fall in US oil drilling rig numbers lifted the prospect of lower crude production and a bounce in stock markets encouraged buying sentiment. Crude oil futures fell by Rs 54 to Rs 2,275 per barrel on Tuesday as speculators cut down their bets positions amid a weakening trend in Asian markets.
4) Exports: Sentiments also remained down-beat on report that exports of over half of the sectors, out of the 30 closely monitored by the Commerce Ministry, were in the negative zone in January due to a fall in global prices and demand. Market participants remained on sidelines eyeing the developments regarding the crucial legislations like GST amendment bill in the ongoing budget session of Parliament.
5) Weak Rupee: Indian rupee was trading in red in the afternoon trade on Tuesday, tracking the mixed trend in the Asian currencies market. Traders are avoiding taking huge positions ahead of an event-heavy week. The government will introduce the railway budget on Thursday and Union Budget on Feb 29.
(With agency inputs)