Mumbai: Bears took charge of the street in the last one-and-a-half hour of trade after trading rangebound since morning. Indian equity benchmarks closed over three-week low on Tuesday, losing 1.4-1.55 per cent on the back of broad-based selling.
The 30-share BSE Sensex closed well below the 17,000 mark; losing 236.07 points to end at 16,882.67. Meanwhile, the 50-share NSE Nifty broke the 5,100 level; dropped 79.85 points, to end at 5,068.50.
Lingering concerns over Greece and Italy too dampened the mood of investors; European markets like France's CAC and Germany's DAX slipped 1.3 per cent each while Britain's FTSE lost 0.6 per cent. The Dow Jones futures too declined 47 points.
Maintaining a 'cautious' call on the market due to macro headwinds, Anirudha Dutta, head of thematic research at CLSA Asia Pacific Markets says global sentiment remains a cause of concern, and is a 'primary overhang' on the market.
Fall in rupee was another cause of concern today - the Indian rupee depreciated to 50.69 to the dollar against 50.30/dollar on Monday.
Dutta says that the rupee volatility remains a worry and sees no respite on that front unless problems in Europe resolve. However, on the slowdown in policy making, Dutta believes that decision making will improve by mid-2012.
Banks, capital goods, FMCG, metals, realty, auto (barring Tata Motors) and power stocks dragged the market sharply.
Volume was quite high as compared to last few sessions; total traded turnover was more than Rs 1.45 lakh crore.
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