Nifty 50 slumps to 24,650 dragged by financial, energy shares; all eyes on RBI

Domestic equity benchmarks fell on Tuesday amid selling pressure in energy, financial and IT shares, though gains in auto stocks lent some support. Investors awaited more corporate earnings and the outcome of the RBI's bi-monthly policy, due the next day, for domestic cues. On Monday, US President Donald Trump threatened to "substantially" increase the tariff on India over the country's purchases of Russian oil. Globally, trade tariff-related jitters kept investors on edge.

The Sensex fell 308.5 points, or 0.4 per cent, to end at 80,710.3 while the Nifty50 lost 73.2 points, or 0.3 per cent, to settle at 24,649.6.

Top Nifty 50 gainers and losers

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In the blue-chip universe, Adani Ports, Reliance, Infosys, Adani Enterprises, Cipla, ICICI Bank and Eternal were the worst hit among the 26 Nifty50 losers.

On the other hand, Titan, IndusInd Bank, SBI Life, Maruti Suzuki and Coal India--closing between 1.4 per cent and 2.0 per cent higher--were the top gainers in the 50-blue-chip pack.

Top Sensex and Nifty 50 movers

Reliance, ICICI Bank and HDFC Bank were the biggest contributors to the losses in both main gauges. On the other hand, gains in Bharti Airtel, Titan and L&T lent some respite to the barometers, saving them from deeper cuts.

How Nifty Bank fared on August 5

The Nifty Bank--whose 12 constituents include SBI and HDFC Bank--gave up 259.1 points, or 0.5 per cent, to close at 55,360.3, after see-sawing in a 445-point range around the flatline during the session. Financial stocks enjoy the maximum weightage of almost 38 per cent in the Nifty50.

All eyes were on the outcome of the MPC's August policy review, with RBI Governor Sanjay Malhotra due to announce the key decisions at 10 am on Wednesday.

Six out of every 10 economists polled by Zee Business expect no change in the August MPC review. The remaining participants anticipate a 25-basis-point cut.

Other stocks in action

DLF shares fell 1.6 per cent to end at Rs 780.7 apiece on BSE, a day after the real estate developer staged a mixed performance for the June quarter. Read more on DLF earnings

The Bharti Airtel stock rose 0.8 per cent to settle at Rs 1,929.8 as investors awaited the telecom giant's financial results due later in the day.

Broader markets

Among broader indices, Nifty Midcap 100 and Nifty Smallcap 100 rose 0.4 per cent and 0.2 per cent respectively.

India's stance on latest turn of events in trade war

The central government termed Trump's latest move as "unjustified", vowing to safeguard its economic interests.

Many analysts attributed the caution on Dalal Street to trade tensions, with some warning that an even higher duty than the current 25 per cent could deal a bigger blow to Indian exporters than anticipated before.

Global markets

European shares began the day on a positive note with the pan-continential Stoxx 600 index quoting 0.4 per cent higher in early trade.

The main British, German and French indices were up around half a per cent each.

Dow futures traded around 125 points (0.3 per cent) higher, indicating a positive start ahead on Wall Street.