The Sensex and Nifty closed lower today after the indices came under selling pressure amid lower Asian markets, widening current account deficit and rupee touching fresh all time lows. While the Sensex closed 467 points or 1.22% lower at 37,922, the Nifty fell 151 points or 1.30% to 11,438 level.
Brokers said weakness was seen in most Asian markets as investors were cautious amid fears of a possible escalation in the US-China trade conflict.
Top Sensex losers were Sun Pharma (3.72%), M&M (3.44%) and Vedanta (3.44%). Top Nifty losers were Bajaj Finance (4.98%) , IndiaBulls Housing Finance (4.23%) and Bajaj Finserv (4.02%).
Of 30 Sensex stocks, 26 closed in the red.
Axis Bank (0.99%) was the top Sensex gainer after the private sector lender announced that Amitabh Chaudhry has been appointed as managing director and CEO from January 1, after incumbent Shikha Sharma steps down at the end of this year.
The stock rose to its 52-week high level of 675.70 rising more than 4.63% in early morning trade.
Mustafa Nadeem, CEO at Epic Research said, "Nifty stumbles close to 11400 as it continues to move in a downward trend. Most sectors were down by 1.5% to 2% as selling pressure intensified further post lunch as bears stronghold tightened to drag indices close to 11400, a point of inflection in the medium term.
A bearish flag was observed in price action on the Daily scale with consolidation between 11,400 to 11,600. A flag pattern, bearish, is a continuation pattern that is observed in between a trending market. Technically, 11,400 is a strong point of support for bulls to safeguard the strength while a close below this level will open the floodgates for lower levels of 11,100.
Support is now seen at 11400 - 11380 and below that on a breach may extend to 11110 - 11150. On the upside, bulls would need to breach the resistance placed at 11600, previous swing top."
Meanwhile, the BSE mid cap and small cap indices fell 277 points (1.68%) and 180 points (1.07%), respectively.
On sectoral basis, auto and banking stocks were the top losers with BSE auto index losing 431 points and BSE banking index falling 317 points respectively.
Of 19 BSE sectoral indices, 18 closed lower. The BSE IT index was the sole gainer rising 0.02% on weakening of rupee.
The Indian currency fell 94 paise intra day to 72.67 level, a fresh all-time low on rising crude oil prices, strengthening dollar and a widening current account deficit. The rupee has lost over 13% since the beginning of this year.
India's current account deficit (CAD) widened to $15.8 billion, which was around 2.4 per cent of the country's Gross Domestic Product (GDP), in the quarter ending June as compared with $15 billion in the same quarter a year before. The weak trade data dampened sentiment on Dalal Street.
The Tata Global Beverages stock rose in early trade today after the firm said it has restructured its international operations. The stock rose over 5% in early trade and hit a fresh intra day high of 235.20 on BSE.
The stock opened at 224 level and hit an intra day low of 221.45 level. However, it closed marginally lower at 222.75 level.
Market breadth was negative with 1048 stocks closing higher compared to 1684 ending in the red on BSE.
The intensifying trade war between the US and China led most Asian stocks lower on Monday. Japan's benchmark Nikkei 225 climbed 0.4 percent to 22,392.93, after the country's gross domestic product surpassed expectations by growing at a 3 percent annual rate in the April-June quarter. The Kospi in South Korea gained 0.2 percent to 2,285.51. But Hong Kong's Hang Seng index tumbled 1.3 percent to 26,636.63. The Shanghai Composite index fell 1.1 percent to 2,673.88. Australia's S&P/ASX 200 was less than 0.1 percent lower at 6,141.40.
US President Donald Trump declared he was considering tariffs on an additional $267 billion in Chinese goods in addition to the $200 billion already facing the risk of duties, raising tensions between the world's two biggest economies. Additional duties on Chinese goods would hurt US manufacturers who use them as raw material and semi finished products in their factories.
US stock indexes fell on Friday after President Donald Trump said he's ready to impose tariffs on essentially every good that's imported from China. The S&P 500 index fell 0.2 percent to 2,871.68, ending the day with its fourth straight loss. The Dow Jones industrial average shed 0.3 percent to 25,916.54. The Nasdaq composite was 0.3 percent lower at 7,902.54.