Mumbai (Maharashtra) [India], December 16 (ANI): Indian equity markets closed sharply lower on Tuesday as the rupee slid to a record low against the US dollar and weak global cues weighed on investor sentiment. The rupee crossed the 91 mark for the first time and has depreciated nearly 1 percent over the past five trading sessions.
The Sensex declined 522 points, or 0.63 percent, to close at 84,679.86, while the Nifty 50 fell 167 points, or 0.64 percent, to end at 25,860.10.
Among sectoral indices, Nifty Realty emerged as the top laggard. Nifty Bank, Nifty Oil and Gas, and Nifty Pharma also ended lower. Nifty Consumer Durables was the lone major gainer during the session.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said benchmark indices corrected sharply during the day. He noted that the Nifty ended 167 points lower, while the Sensex declined by 522 points. He added that most major sectoral indices witnessed intraday profit booking at higher levels, with the realty index recording the steepest fall of 1.50 percent.
From a technical perspective, Chouhan said that after a gap-down opening, selling pressure persisted throughout the session. He added that the formation of a bearish candle on daily charts indicates further weakness from current levels.
Vinod Nair, Head of Research at Geojit Investments Limited, said continued weakness in the rupee, driven by persistent foreign institutional investor outflows and subdued global sentiment, dragged domestic markets into negative territory. He added that small- and mid-cap stocks underperformed large caps, with IT, metals, banking, and realty stocks leading the decline, while consumption stocks offered limited support.
Nair said volatility is expected to remain elevated amid currency fluctuations and uncertainty surrounding foreign inflows. He added that progress on the US-India trade deal and stabilization of the rupee will be critical, while softer commodity prices and improving earnings visibility provide a constructive medium-term outlook.
Vatsal Bhuva, Technical Analyst at LKP Securities, said Bank Nifty ended the session on a cautious note, forming a bearish candlestick and closing below its 10-day and 20-day simple moving averages, reflecting short-term pressure. He added that the relative strength index is making lower tops, indicating weakening momentum and a lack of buying strength.
Bhuva said the index has crucial support at 58,800, and a decisive close below this level could open further downside toward its 50-day simple moving average in the 58,300 to 58,200 zone. On the upside, immediate resistance lies at the 59,300 and 59,500 levels, adding that a sustainable bullish outlook would require a close above 59,500.
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