Indian markets continued to decline on Tuesday, mirroring the sell-off across Asian markets in the wake of the Wall Street free fall. S&P 500 declined 2.7 per cent, Dow Jones 2.1 per cent, and Nasdaq dropped 4 per cent overnight after US President Donald Trump refused to rule out recession.
Sensex and Nifty slumped in early trade on Tuesday, dropping 346.23 points or 0.47 per cent and 124.80 points or 0.56 per cent, but staged a comeback as the day progressed.
At the time of writing this report, the Sensex was down 0.19 per cent and Nifty was trading flat.
IndusInd Bank was the biggest laggard, declining 25 per cent to hit the lower circuit at Rs 672 per piece after the private sector lender reported some discrepancies in its derivatives portfolio. In a regulatory filing on Monday, the Mumbai-based bank said during an internal review of processes relating to the derivatives portfolio, it noted some discrepancies in the account balances.
READ MORE: Explainer | IndusInd Bank share crash: What is causing the slump?
Infosys, Mahindra & Mahindra, Zomato, Bajaj Finserv, UltraTech Cement, Tech Mahindra, Adani Ports, Tata Steel, Kotak Mahindra Bank and HDFC Bank were among the major laggards.
Sun Pharmaceuticals, ICICI Bank, Nestle India, Bharti Airtel, NTPC and Titan were the gainers.
On Monday, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 485.41 crore, while Domestic Institutional Investors (DIIs) picked up equities worth Rs 263.51 crore.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services said the decline in the US markets was in response to Trump's tariffs and the possibility of US recession by the year end.
HDFC Securities' Head of Prime Research Devarsh Vakil pointed out that the US stocks tumbled on Monday amid ongoing tariff conflicts and growing concerns about a potential federal government shutdown, fuelling worries that the US economy might be heading toward a recession.
