SENSEX tanks 700 pts from day's high, NIFTY50 below 25,900 level: Key factors dragging markets lower

The equity benchmark indices, though, opened with marginal gains on Tuesday, October 28; it lost momentum and slipped to red on profit booking.

SENSEX has tumbled almost 700 points from its day’s high, while the 50-share index has lost over 200 points.

Here are the key factors behind the market fall

Weak Asian cues

Asian shares were mostly trading lower on Tuesday as investors turned cautious ahead of a planned meeting between US President Donald Trump and China's top leader.

Trump indicated that he expects to reach a new trade agreement with Chinese President Xi Jinping during their meeting on the sidelines of a Pacific Rim summit in South Korea later this week. Such a deal could help ease trade tensions that have unsettled global markets and disrupted businesses since his return to the White House.

At the time of writing the article, Japan's Nikkei was down 0.61%, Hong Kong's Hang Seng slipped 0.16%, South Korea's KOSPI fell 1.09%, and China's Shanghai Composite declined 0.12%.

Rupee check

The rupee depreciated 21 paise to 88.40 against the US dollar in early trade on Tuesday, pressured by month-end dollar demand from importers and a rise in global crude oil prices.

At the interbank foreign exchange market, the rupee opened at 88.34 and slipped to 88.40 against the greenback, marking a 21-paise decline from its previous close.

On Monday, the domestic currency had dropped 36 paise to settle at 88.19 against the US dollar.

India VIX

After touching a one-month high of 12.73 in the previous trading session, the volatility index continues to trade higher, keeping traders cautious.

India VIX was trading 5.03% higher at the 12.46 level.

Sectoral watch

Except for Nifty Metal (1.02%) and Nifty Media (0.28%), all the other sectoral gauges were trading lower on Tuesday.

Nifty Consumer Durables led the losses, slipping 0.93%, weighed down by declines in Bata India, Voltas, and Blue Star.

Nifty Realty (-0.85%), Nifty IT (-0.79%), Nifty FMCG (-0.56%) and Nifty Pharma (-0.35%) were the other top losers.