TCS, RIL drag Sensex over 550 pts lower tracking weak Asian cues; Nifty below 22K

IT major TCS emerged as the top laggard, experiencing a 2.7% decline in early trade. This dip coincided with 2.02 crore or 0.6% shares changing hands in a block deal on the counter.

Joining TCS in the list of Sensex losers were , , , , and . Conversely, , , , , and opened with gains amidst the early trading session.

Among individual stocks, surged 5.4% after the company, in a joint venture with Stockwell Solar Services, received four orders worth Rs 1,026 crore for solar business.

On the sectoral front, IT fell 1.2%, led by , Persistent Systems, and LTTS. Nifty Bank, Auto, FMCG, Pharma, and Oil & Gas also declined. In the broader market, Nifty Midcap100 fell 0.15%, while Nifty Smallcap100 rose 0.2%.

Experts Take
"The reading for the Index will remain the same i.e. breakout on either side giving a proper direction (Higher side 22,200 and lower side 21,900)," said Aditya Gaggar, Director of Progressive Shares.

"The Metal sector experienced a sharp reversal in yesterday's trade and some of the components are pointing towards an extension of the current move. Stock-specific buying can be seen in the PSU Banking space," Gaggar suggested.

Deven Mehata, Research Analyst at Choice Broking, said, "Nifty can find support at 21,950 followed by 21,900 and 21,850. On the higher side, 22,100 can be an immediate resistance, followed by 22,150 and 22,200."

Global Markets
Asian markets slipped ahead of the Bank of Japan's policy decision later in the day, potentially ending the longest streak of negative interest rates.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.66%. China stocks fell, with Hong Kong's Hang Seng index down over 1%, while the blue-chip shares eased 0.3%.

Wall Street equities closed higher overnight, with treasury yields increasing ahead of the Federal Reserve policy decision and commentary on Wednesday, as investors seek insights on the U.S. central bank's future rate trajectory.

FII/DII Tracker
Foreign portfolio investors sold Indian shares worth Rs 2,051 crore on a net basis on Monday. Domestic institutional investors bought a net of Rs 2,261 crore of stocks.

Oil Slips
Oil prices edged down early on Tuesday after gaining in the previous trading session, due in part to the prospect of rising supply from Russia as well as the possibility of slower-than-expected downstream demand in sectors such as jet fuel.

The Brent crude oil futures contract for May delivery slipped 16 cents to $86.73 a barrel, whereas that for U.S. West Texas Intermediate (WTI) fell 13 cents to $82.03. The WTI April contract, which expires tomorrow, fell 16 cents to $82.56.

Rupee Strengthens
The Indian rupee declined 5 paise to 82.95 against the US dollar in early trade on firm crude prices. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.08% to 103.66 level.

(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)