Indian markets fell sharply on Tuesday after surging to record highs in the morning, affected by lack of growth in corporate earnings and fear that inflation might climb because of higher crude prices.
This was the biggest decline in over a week, and came a day after the Sensex and the National Stock Exchange Nifty 50 saw their biggest single-day gain in 10 years as sentiment remained buoyant after exit polls predicted a comfortable victory for the National Democratic Alliance.
The Sensex ended 382.87 points lower at 38,969.8 while the broader Nifty 50 index declined by 1%, or 119.15 points, to end at 11,709.
Among the top stocks on the Sensex were Reliance Industries, Bajaj Finance and Hindustan Unilever. Dr Reddy’s Laboratories, Bharti Infratel, Britannia, Reliance and Titan were the biggest gainers on the Nifty. Tata Motors and IndusInd Bank saw their stocks decline the most in the two indices.
Shares of Tata Motors fell 7% after the automaker announced its fourth-quarter earnings, reported Moneycontrol. It earned a net profit of Rs 1,117 crore, beating estimates but lower than Rs 2,125 crore the year before.
On Monday, Indian markets had ended at record highs. The Sensex surged 3.75% to close 1,421.90 points higher at 39,352.67, while the National Stock Exchange Nifty 50 ended 3.69%, or 421.10 points, higher at 11,828.25.
The rupee opened flat against the US dollar on Tuesday. The rupee traded at 69.74 a dollar at 4.23 pm. On Monday, the Indian currency had appreciated by 49 paise, the biggest single-day gain in two months, and closed at 69.74.