Mumbai: Market benchmarks closed modestly lower on Tuesday after two days of gains, weighed by profit booking in Reliance Industries, IT and auto stocks amid lack of fresh buying triggers.
A depreciating rupee and lacklustre global cues further weighed on sentiment, traders said.
After a positive opening, the 30-share BSE Sensex gained momentum through the session, but succumbed to a fag-end selloff to end at 52,861.18, down 18.82 points or 0.04 per cent.
On similar lines, the broader NSE Nifty fell 16.10 points or 0.1 per cent to 15,818.25.
Tech Mahindra was the top loser among the Sensex constituents, shedding 2.30 per cent, followed by TCS, Maruti, Reliance Industries, Sun Pharma, Infosys and M&M.
On the other hand, UltraTech Cement, HDFC Bank, Bajaj Finance, Bajaj Finserv, Kotak Bank and IndusInd Bank were among the gainers, spurting up to 3.22 per cent.
In the Sensex pack, 11 stocks advanced, while 19 closed in the red.
"Indian market was led by financial stocks. Business updates of major banks and NBFCs for the quarter of June which showed improvement in business activity, minimising concerns over second wave impact.
"But profit-booking breached the overall market by the end of the day. Globally, oil prices surged after OPEC called off talks to boost production despite rising global demand," said Vinod Nair, Head of Research at Geojit Financial Services.
Meanwhile, GST tax collections slipped below Rs 1 lakh crore in June for the first time in eight months as the second wave of coronavirus lockdowns hit businesses.
At Rs 92,849 crore, the Goods and Services Tax (GST) collections were the lowest in 10 months since August 2020, official numbers released on Tuesday showed.
Sectorally, BSE auto, IT, teck, energy and industrials tumbled up to 1.85 per cent, while bankex, finance and power led the gainers' list.
In the broader markets, the BSE midcap index climbed 0.19 per cent, while the smallcap gauge slipped 0.26 per cent.
Global equities came under pressure as firming oil prices raised concerns over rising inflation and its impact on the nascent economic recovery.
Elsewhere in Asia, bourses in Shanghai and Hong Kong closed in the negative terrain, while Seoul and Tokyo ended with gains.
Stock exchanges in Europe were trading in the red in mid-session deals.
Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 338.43 crore, as per exchange data.
Rupee Trips 24 Paise To 74.55 Against USD
The Indian rupee weakened by 24 paise to close at 74.55 against the US dollar on Tuesday as firmer American currency and rising crude oil prices weighed on investor sentiment.
At the interbank foreign exchange market, the rupee opened at 74.28 per dollar. It hovered in the range of 74.25 to 74.62 during the day before ending at 74.55 against the greenback.
The rupee depreciated against the US dollar on Tuesday, amid importer demand for dollars following a sharp spike in crude oil prices, according to Sriram Iyer, Senior Research Analyst at Reliance Securities.
The increase in oil prices could raise inflation expectations and widen India's trade deficit and could hurt the rupee, Iyer added.
Meanwhile, markets still remain focused on the release of Federal Reserve monetary policy minutes on Wednesday that will be scrutinised for clues on US monetary policy.
The notes of the meeting should offer more insight on the inflation stance as well, he said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.18 per cent to 92.38.
On the domestic equity market front, the BSE Sensex ended 18.82 points or 0.04 per cent lower at 52,861.18, while the broader NSE Nifty fell 16.10 points or 0.1 per cent to 15,818.25.
Brent crude futures, the global oil benchmark, advanced 0.19 per cent to USD 77.31 per barrel.
Gold Gains Rs 389, Silver Jumps Rs 397
Gold in the national capital on Tuesday rose by Rs 389 to Rs 46,762 per 10 gram in line with gain in global precious metal prices, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 46,373 per 10 grams.
Silver also jumped Rs 397 to Rs 69,105 per kilogram from Rs 68,708 per kilogram in the previous trade.
In the international market, gold was trading higher at USD 1,806 per ounce and silver was flat at USD 26.63 per ounce.
The weaker dollar boosted buying in gold for the day, according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.