Indian market fell sharply on Tuesday in the last hour of trade as crude prices firmed up. Brent crude prices surged more than 1 percent to trade above $79 and Nymex around $70/bbl after Saudi Arabia’s statement that the country is comfortable with crude above $80/bbl.
Post the leading Opec producer’s statement, the BSE Sensex plunged nearly 300 points to close at 37,291, while the Nifty fell 99 points to 11,279.
Tuesday’s fall has been broad-based with Midcap Index edging 270 points lower to close below 19,000 and Nifty Bank shedding 379 points to close at 26,441.
Market breadth settled in favour of declines with the NSE advance-decline ratio at 1:3.
Ten of 11 sectoral indices closed with major cuts with financials and auto being top losers. FMCG was the only sector that ended higher with Nifty heavyweight Hindustan Unilever closing the day with a gain of nearly 4 percent.
The mega- PSU bank merger announcement on Monday evening led to 16 percent fall in Bank of Baroda shares, while Vijaya Bank also lost 6 percent.
Shares of Dena Bank, which is the weakest entity among the three to be merged, closed at the upper circuit after surging nearly 20 percent.
In the futures market, Nifty call options of 11,500, 11,600 and 11,700 saw an addition of 1.4-1.6 lakh shares in the open interest with premium slipping up to 35 percent.
Nifty Put Option of 11,300 added a little more than 1 lakh shares in the open interest with premium moving 20 percent higher. Nifty September Futures closed with a premium of 40 points against a premium of 30 points on Monday.
Asia markets were largely positive on Tuesday, despite an escalation in trade tensions between the United States and China. Japan's Nikkei 225 rose 1.4 percent to close at 23,420. The Topix index ended the trading day 1.8 percent higher at 1,760.
In South Korea, the Kospi was up by 0.3 percent to close at 2,309 as the performance of blue chip stocks was mixed.
Shares of Samsung Electronics were up by 0.8 percent and Hyundai Motor saw gains of 0.4 percent, while Korea Electric Power Corporation slid by 1 percent.
Australia's ASX 200 slipped by 0.4 percent to close at 6,161, with the energy sector ending lower by 1.5 percent. The heavily-weighted financial subindex ended the trading day largely flat as AMP fell by 1.56 percent.
In the Greater China region, markets largely saw a recovery from their earlier slump. Hong Kong's Hang Seng index recovered 435 points from lows to close 0.6 percent in the green even though tech giant Tencent remained down by 0.2 percent.Over on the mainland, markets ended the trading day higher. The Shanghai composite advanced 1.8 percent to close at 2,700, while the Shenzhen composite climbed 2 percent to close at 1,404.