The Sensex and Nifty closed lower for the second straight session in trade today on negative global cues and weak rupee. While the Sensex fell 224 points or 0.59% to 37,644 level, Nifty closed 0.65% or 73 points lower at 11,355 level as global markets crashed amid fears that financial crisis in Turkey could spread to other economies.
Meanwhile, the rupee hit an all-time low of 69.91 intra day tracking weakness in global currencies.
Infosys (1.75%), Sun Pharma (1.65%) and Wipro (1.31%) were the top Sensex gainers.
IT sector stocks were the top gainers today due to a fall in rupee.
The BSE IT index rose the most among the 19 sectoral indices to close 1.24% or 182 points higher at 14,865 level.
A fall in rupee translates to higher income for IT firms. IT companies earn most of their revenues in dollars. So, each dollar earned abroad will now get them more rupees.
Banking and oil and gas indices on the BSE were the worst losers with BSE bankex falling 1.20% or 380 points to 31,368 level.
The BSE oil and gas index too fell 1.93% or 290 points to close at 14,804.
Vedanta (3.40%), SBI (3.17%) and YES Bank (3.11%) were the top Sensex losers.
HDFC Bank slipped 1.15 percent after its deputy managing director put in his papers on Friday, while State Bank of India shares shed 3.17 percent after the lender reported a wider-than-expected loss in the quarter ended June.
Cadila Healthcare slipped more than 6 percent on lower-than-expected US sales, a Mumbai-based analyst said. The company beat analysts' estimates for first-quarter profit on Monday.
Market breadth was negative with 956 stocks closing higher compared to 1724 falling on the BSE."Emerging market currencies have declined sharply as Turkish lira has fallen to all time low level after US president Donald Trump imposed sanctions and tariffs on Turkey. The crisis is unlikely to resolve anytime soon. An absence of aggressive intervention by the RBI has also hurt the rupee. Market is nervous ahead of India's CPI data due later today. The dollar has strengthened to multi-month high on expectations of aggressive interest rate hikes by the Federal Reserve in coming months as the US economy is experiencing strong growth momentum. Hence, due to all these factors, the rupee has declined to all-time low level today," Rushabh Maru, Research Analyst at Anand Rathi said.
Investors are uneasy over whether Turkey's government can cope with a plunging currency, a diplomatic spat with Washington and other problems. President Recep Tayyip Erdogan has accumulated more and more control over Turkey's financial system and central bank.
Investors preferred safe-havens such as the US dollar and the yen after a plunge in the Turkish Lira sent all emerging market currencies sharply lower.
The lira has fallen about 45 percent against the greenback this year on worries over Turkish President Tayyip Erdogan's increasing control of the economy and a deepening diplomatic rift with the US.
The Shanghai Composite Index lost 1.7 percent to 2,746.90 and Tokyo's Nikkei 225 retreated 1.9 percent to 21,885.45. Hong Kong's Hang Seng shed 1.8 percent to 27,850.55 and Seoul's Kospi retreated 1.6 percent to 2,249.65. Sydney's S&P-ASX 200 declined 0.5 percent to 6,246.80. Benchmarks in New Zealand, Singapore, Bangkok and Kuala Lumpur also fell.
Stock prices slid as investors responded to Turkey jitters by settling equities and buying government bonds.
The dollar strengthened while major exporters including technology, basic materials and industrial companies sank. The Standard & Poor's 500 index slide 0.7 percent to 2,833.28, ending a five-week winning streak.
The Nasdaq composite broke an eight-day rising trend and sank 0.7 percent to 7,839.11.
Written and edited by Aseem Thapliyal