Markets witnessed a volatile trade on Tuesday as investors looked for clarity on issues of taxation on share buyback and surcharge on FPI investment. Furthermore, waning rate cut hopes from the US Fedral Reserve dented sentiment across Asian markets.
Markets pared losses and ended the session on a flat note. The Sensex closed 10.25 points, or 0.03 per cent, higher at 38,731 levels with TCS, HCL Tech and ITC being the top laggards. On the contrary, Bajaj Finance, Sun Pharmaceuticals and Hero Moto Corp were the top gainers on the Sensex. The broader Nifty50, too, settled 2.7 points, or 0.02 per cent, lower at 11,556 levels.
The Sensex hit an intra-day low of 38,436, down 285 points, while the Nifty50 skid 98 points to touch 11,461 mark.
In the broader market, S&P BSE Mid-Cap ended 92 points, or 0.63 per cent, higher at 14,524 levels while the BSE Small-Cap gained 7 points, or 0.05 levels, to settle at 13,802 levels.
Sectorally, FMCG and information technology counters took the biggest knock with the respective indices settling nearly 0.95 per cent each. Among gainers, Nifty Realty and Pharma indices closed 2.75 and 2.62 per cent higher respectively followed by Nifty PSU Bank index which was up 1.55 per cent.
Shares of Titan Company slumped as much as 13 per cent to Rs 1,094 apiece on the BSE in the opening deals on Monday after the company reported a lower-than-expected growth in jewellery business during April-June quarter (Q1FY20) owing to a tough macro-economic environment with consumption taking a hit.
Shares of consumer discretionary companies were under pressure on Tuesday on concerns over lower-than- expected earnings for April-June quarter (Q1FY19), due to a tough macro-economic environment.
Mindtree shares extended losses on Tuesday and slipped 4 per cent intra-day to hit a new 52-week low of Rs 736. The downward trend, which led to a fall of 17 per cent in the stock's value in the past two days, began after three founders of the Bengaluru-based IT services company resigned following a change of control.