Market wrap: RIL, banks drag Sensex 396 points down, Nifty ends at 17,999

Top headlines
 

• RIL and banks drag Sensex 396 points down, Nifty ends at 17,999
• Auto stocks outperform in a weak market; Maruti rises 7%
• Policybazaar shares surge 37% over issue price
• Macrotech Developers rallies 14% on launch of QIP
• Cement stocks decline on reports of price cut in Delhi-NCR
• Tarsons Products IPO subscribed over 3 times so far

 
Inflationary pressure and its subsequent impact on India Inc's earnings going forward has worried equity investors. Despite firm global cues, domestic equities ended lower on Tuesday as valuation mismatch prompted market participants to book profit.
 
The BSE Sensex dropped 396 points, or 0.6 per cent, to end the session at 60,322, while the Nifty50 ended at 17,999, down 110 points. Both indices touched intra-day lows – of 60,199 and 17,959, respectively.
 
Reliance Industries, down 2.6 per cent, was the biggest laggard on the Sensex and accounted for nearly 50 per cent of the day’s fall. Besides, State Bank of India, Ultratech Cement, NTPC, and IndusInd Bank were the other losers.
 
On the upside, Maruti Suzuki zoomed 7 per cent amid reports of easing chip and semi-conductor shortages. M&M, Bharat Forge, and Tata Motors also jumped up to 3 per cent each, taking the Auto index nearly 3 per cent higher today.
 
The broader markets, however, had a mixed showing, with the MidCap index on the BSE closing 0.2 per cent lower, and the SmallCap index adding 0.18 per cent.
 
Among individual stocks, the shares of PB Fintech, the parent company of Policybazaar, rallied another 19 per cent to Rs 1,436 on the BSE in today's intra-day trade after a strong market debut on Monday. They, however, ended 11.5 per cent higher, taking their gain over their issue price Rs 980 per share to 37 per cent.
 
The shares of Macrotech Developers also soared 14 per cent to Rs 1,459.25 on the BSE in Tuesday's intra-day trade after the real-estate developer announced the opening of its qualified institutional placement (QIP) issue for raising Rs 4,000 crore on Monday.
 
Cement stocks, however, ended up to 3 per cent lower after reports suggested sector players in Delhi-NCR region had cut prices.
 
Despite volatility in the secondary market, primary market participation remained healthy, with Tarsons Products IPO garnering a subscription of over 3 times till 4 PM.
 
Going forward, analysts expect mixed global cues to keep participants on the edge. Among the sectors, the continuous underperformance of the banking pack is dragging the benchmark lower, while others are helping the index cap the damage. In the current scenario, it's prudent according to analysts to stay light and wait for clarity.
 
According to tech charts, 18,100 is acting as a key resistance level for the Nifty, while there is support in the range of 17,870-17,900.