The equity benchmark Sensex extended its fall for a fifth straight session Tuesday, making it the longest losing spree in over three months as concerns persist on multiple fronts in the form of rising crude prices, tumbling rupee and ongoing global trade tiff.
The 30-share BSE index also logged its weakest closing in over two weeks by falling 155 points to 38,157.92, following a widespread selling mainly in sectors like consumer durables, financials and banks.
The broader Nifty too fell for the second straight session and closed with a loss of over 62 points, or 0.54 per cent, at 11,520.30, after hovering between 11,496.85 and 11,602.55.
Investors remained concerned over sustained foreign fund outflows and widening current account deficit as a result of soaring crude oil prices, leading to a continuous fall in the domestic currency.
Meanwhile, the Indian rupee crashed to a fresh record low of 71.57 against the US dollar in intra-day movement, weighing on investors sentiment.
Besides, the ongoing trade war rhetorics between the two largest economies, the US and China, further hit market sentiments globally.
"Continued weakness in currency and surge in oil price dragged the indices to a consolidation. Additionally, concerns on widening deficit and inflation trajectory led domestic bond yield to break 8 per cent mark. Weak global market on account of trade tensions further steered the investor's sentiment," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.
Domestic bourses saw a hectic selling in almost all sectors -- consumer durables, PSUs, infrastructure, realty, FMCG, telecom, utilities, power, metal, auto, healthcare, banking, oil and gas, capital goods and finance.
The BSE Sensex soared 206.04 points to hit a high of 38,518.56 in early trade but gave up its gains following a widespread sell-off, which dragged it down to 38,098.60. The benchmark equity gauge recorded its longest string of losses since May 21.
It finally ended at an over two-week low of 38,157.92, down 154.60 points, or 0.40 per cent. The Sensex had lost 584.11 points in the previous four sessions.
The broader NSE Nifty closed lower by 62.05 points, or 0.54 per cent, at 11,520.30, after hovering between 11,496.85 and 11,602.55.
Sentiment remained weak on sustained capital outflows by foreign funds after an investor lobby group named AMRI (Asset Management Roundtable of India) said on Monday that the immediate impact of the new Sebi KYC norms, if not amended, would flush out USD 75-billion FPI investment from the country within a short time-frame.
The organisation also warned that it would have severe impact on stocks and rupee.
However, taking strong objection to these claims, the Securities and Exchange Board of India (Sebi) on Tuesday said, "It is preposterous and highly irresponsible to claim that USD 75 billion FPI investment will move out of the country because of Sebi's circular issued in April 2018."
Meanwhile, foreign portfolio investors (FPIs) net sold shares worth a net of Rs 21.13 crore and domestic institutional investors (DIIs) also sold equities to the tune of Rs 542.12 crore on Monday, as per provisional data.
In the Sensex, Asian Paints topped the losers' chart, falling 3.49 per cent, followed by SBI at 3.20 per cent.
Other major laggards were Adani Ports 2.95 per cent, HUL 2.80 per cent, Coal India 2.61 per cent, IndusInd Bank 2.36 per cent, Hero Motocorp 1.75 per cent, Tata Motors 1.74 per cent, ICICI Bank 1.72 per cent, Bharti Airtel 1.69 per cent, Vedanta 1.64 per cent, Yes Bank 1.62 per cent and ONGC 1.55 per cent.
M&M fell 1.51 per cent, followed by Tata Steel 1.24 per cent, Bajaj Auto 1.09 per cent, ITC 0.99 per cent, Kotak Bank 0.81 per cent, HDFC Bank 0.79 per cent, NTPC 0.71 per cent, Maruti Suzuki 0.56 per cent, PowerGrid 0.44 per cent, L&T 0.35 per cent and Sun Pharma 0.27 per cent.
Whereas, exporters rose the most, with Infosys rising by 2.64 per cent, TCS 1.86 per cent and Wipro 1.42 per cent in the Sensex index, buoyed by the weaker rupee.
Tata Consultancy Services also Tuesday became the second Indian company to attain a market valuation of over Rs 8 lakh crore mark following surge in its share price.
Other gainers were Axis Bank, up by 1.39 per cent, RIL 0.97 per cent and HDFC 0.79 per cent.
Broader markets too witnessed selling pressure, with the mid-cap index tanking 2.60 per cent and small-caps losing 2.04 per cent.
Among BSE sectoral indices, consumer durables fell the most by losing 2.58 per cent followed by PSU 2.42 per cent, infra 2.41 per cent, realty 2.11 per cent, FMCG 2.09 per cent, telecom 2.07 per cent, utilities 2.04 per cent, power 1.98 per cent, metal 1.89 per cent, auto 1.77 per cent, healthcare 1.42 per cent, banking 1.41 per cent, oil & gas 1.40 per cent, capital goods 1.37 per cent and finance 1.25 per cent.
While IT rose 1.93 per cent and teck 1.31 per cent.
Asia closed mostly mixed. Japan's Nikkei was down 0.05 per cent, while Hong Kong's Hang Seng gained 0.94 per cent and Shanghai Composite Index rose 1.10 per cent.
In Europe, Frankfurt's DAX fell 0.83 per cent and France's Paris CAC was down 1.12 per cent. London's FTSE, too, declined 0.26 per cent in early trade.
Oil prices rose in the international market after the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane.
Benchmark Brent crude was up 1.74 per cent to trade at USD 79.51 a barrel.
WTI also quoted higher 2.05 per cent to USD 71.23 per cent.