Indian equity markets fell marginally on Tuesday as investors avoided taking long positions due to a truncated trading week. This week markets will be open for only three days. On 1 May, markets are shut due to Maharashtra Day, while 29 April was a holiday because of polling for Lok Sabha elections in Mumbai.
The benchmark S&P BSE Sensex fell 0.09% to close at 39,031.55, while the NSE Nifty 50 index declined 0.06% to end at 11,748.15 points.
Investors also exercised caution ahead of the US Federal Reserve's two-day policy meeting, which ends on Wednesday and US payroll data, slated for release on Friday. The US Fed is expected to leave interest rates unchanged as it seeks to balance robust economic growth amid low inflation.
"We expect markets to remain volatile and range bound in the near term given the earnings outcome and central election progress. On the global front, movement in crude oil prices and currency would be closely monitored by the market participants. Further, outcome of FOMC meet will remain on market radar," said Jayant Manglik, President - Retail Distribution, Religare Broking Ltd.
Back home, Yes Bank slumped 29.2% after the lender reported surprise loss for the Jan-Mar and guided for lower growth for the current financial year, following which many brokerage firms downgraded the stock and cut target price.
Anil Ambani group companies slumped after Reliance Capital and its units--Reliance Home Finance and Reliance Commercial Finance--suffered downgrades. Reliance Capital fell 8.5%, Reliance Power slumped 18%, Reliance Infrastructure was down 10%, Reliance Communications fell 1.7%.
Shares of Wadia Group companies also fell after news reports surfaced saying group heir Ness Wadia has been sentenced to a suspended two-year jail term in Japan for possession of drugs. Bombay Dyeing & Mfg Co Ltd fell 9.8% on BSE, while National Perioxide slipped 5.8%. Bombay Burmah Trading Corp Ltd was down 2.4%, while Britannia Industries Ltd fell 2.5%.