Benchmark equity indices fell after a muted opening on Tuesday amid mixed global cues and nervousness regarding December quarter results.
The S&P BSE Sensex fell over 300 points in early trade, while the NSE Nifty50 remained just above 18,000 after shedding nearly 90 points.
Shares of IT major Tata Consultancy Services (TCS) fell 2.40 per cent after the firm reported weaker-than-expected net profit growth in the third quarter. Most of the shares listed on the 30-scrip Sensex were trading in the red, with banks and IT stocks leading the losses.
Infosys, IndusInd Bank and HDFC Bank were the top losers in early trade, while Tata Motors led the gainers pack as its stock rose nearly 6 per cent. Some of the other gainers were Tata Steel, Mahindra and Mahindra, PowerGrid and Sun Pharma.
Volatility made a comeback during Tuesday’s trading session as investors turned cautious over fears of weaker December quarter results. Global cues also turned weak as the attention shifts to Federal Reserve Chair Jerome Powell’s speech on how the US Fed will tackle global inflation.
Domestic investors are also awaiting key inflation data, scheduled to be released on Thursday. A Reuters poll of economists suggested that retail inflation stayed within the Reserve Bank of India’s comfort zone for a second month in December.
Meanwhile, domestic equity markets continue to remain under selling pressure from Foreign Institutional Investors (FII).