Indian equity benchmark indices, the BSE Sensex and the NSE Nifty50, started sharply lower on Tuesday, with selling seen across all sectors except IT.
The country's gross domestic product (GDP) growth rate slipped to 5 percent, the slowest in over five years. The subdued trend in GST receipts coupled with plummeting auto sales in August further dented risk appetite in equities.
Additionally, the uncertainty over the fate of US-China trade talks, as the two countries' new tariffs kick in, further weighed on sentiment.
The BSE Sensex declined 324.56 points, or 0.87 percent, to trade at 37,008 in the early trade. The NSE Nifty50 also erased over 100 points, or 0.91 percent, to trade at 10, 923.
The Nifty MidCap index underperformed, falling almost a percent, while the banking gauge, Nifty Bank, declined 1.32 percent.
Auto stocks slipped as August sales data showed a declining trend in the sector. Maruti Suzuki, Tata Motors, Eicher Motors and M&M slipped between 1 and 4.4 percent.
IT stocks lead from the front with Tech Mahindra, Tata Consultancy Services and HCL Technologies among top 5 Nifty gainers, rising between 1 and 2.2 percent. Bharti Infratel and Hero MotoCorp were other gainers rising between 1 and 1.7 percent.
Punjab National Bank shares slipped 6.7 percent after the Centre announced its merger with the Oriental Bank of Commerce and United Bank of India.
Indian Oil Corp declined over 4 percent and Bharat Petroleum Corp also slipped over 3 percent reacting to reports that the government is mulling to dilute its stake in BPCL and sell it to IOC.
Meanwhile, the rupee stepped back from 2-week highs hit in the previous session and opened lower against the US dollar on Tuesday, hurt by a stronger greenback. The home currency opened at 71.97, after its Friday’s close of 71.42.
Indian financial and money markets were shut on Monday on account of a public holiday.
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First Published: IST