NIFTY slips below 21,900, SENSEX tanks over 700 points: Key reason behind today’s fall

Benchmark indices on Tuesday shedded over 1%. NIFTY50 closed at 21,817 points or 1.08% down, while SENSEX ended 1.01% lower at 72,012.05. Sell-offs in index heavyweights like Tata Consultancy Services (TCS), Infosys and Reliance Industries dragged down the indices.

Key factors behind today’s fall

As per experts, the domestic markets declined amid weak global sentiments ahead of the US Federal Reserve meeting. The reversal of the negative interest rate by the Central Bank of Japan also hit investor sentiments, especially in the Asian markets.

Furthermore, weakness in broader markets and the rise in the US dollar also impacted the Indian stock market.

Out of the NIFTY50 space, 41 stocks closed lower. TCS, Bharat Petroleum Corporation and Cipla were among the top losers.

All sectors close in red

All sectoral indices ended in red, with IT (-2.90%), Media (-2.45%), FMCG (-2.16%), and PSU Bank (-1.56%) were the top losing indices. The BANK NIFTY (-0.41%) index closed with cuts. Sell-offs in IndusInd Bank, State Bank of India and Axis Bank dragged down the index.

Broader market underperform

Selloff in the broader market continued for the third consecutive day. The NIFTY Midcap 100 index (-1.24%) closed lower today. The NIFTY Smallcap 100 Index was also down 1.19%. On the stocks front, Tata Consultancy Services (TCS) closed 4.37% down over reports that Tata Sons will offload 2.2 crore shares at an average price of ₹4,043 per equity share. Shares of Paytm closed 4.57% higher on Tuesday after ending the last two sessions in the upper circuit.

Popular Vehicles and Services' shares debuted on the stock exchanges at a 1.96% discount. The stock listed at ₹289.2 per share compared to the issue price of ₹295 per share on the NSE.