MARKET WRAP: Sensex dips 127 pts, Nifty below 12,000; PSBs, metals decline

Fresh trade war fears and expectations of another rate cut by the Reserve Bank of India (RBI) dragged equity markets lower on Tuesday. Besides, profit-booking in index heavy-weights like HDFC Bank, Reliance Industries, L&T and ICICI Bank contributed to the index fall. 

US president Donald Trump said on Monday that the US would restore, with immediate effect, tariffs on all steel and aluminum that are shipped into the US from Brazil and Argentina. He said the countries were indulged in "massive devaluation of their currencies", which was hurting US farmers. 

The benchmark S&P BSE Sensex closed at 40,675.45 level, down 126.72 points, or 0.31 per cent. 22 of the 30 stocks listed on the index ended the day in the red. Bajaj Auto, however, setted as the top gainer, up over 3 per cent on the 30-share index. During the day, the Sensex hit an intra-day low of 40,554.04.

On the NSE, the Nifty50 slipped below the crucial 12,000-mark after 5 trading sessions, and settled 54 points, or 0.45 pe cent, lower at 11,994.2-mark.

Sectorally, Nifty PSU Bank index skid the most, down nearly 3 per cent, followed by Nifty Metal index (down 2.5 per cent). On the upside, however, Nifty Realty index closed 1.35 per cent higher.

In the broader market, the S&P BSE mid-cap index slipped close to a per cent to end at 14,824.55, while the S&P BSE small-cap index shed 0.7 per cent to close at 13,410.74.