Indian markets fell sharply today amid weak global cues and disappointing domestic factory output data. The Sensex declined 229 points to 40,116 while the broader Nifty settled 0.60% lower at 11,840. Some profit-taking was seen in banking stocks after their recent outperformance. The Nifty Bank index fell 1.8%. Yes Bank fell 6% while SBI, Axis Bank and Bank of Baroda declined 3%.

Shares of Infosys fell 2% today. Infosys has received another whistleblower complaint against chief executive Salil Parekh of misdemeanours, days after a similar letter prompted the company’s board to institute an independent probe.

Gains in heavyweights TCS, up 4%, and RIL, up 3%, helped cap losses.

Nifty is likely to see further profit-booking in the near term after the breach of 11,850, says Amit Shah, technical analyst with Indiabulls Ventures. "Nifty is likely to test the next support zone of 11,700. Broader uptrend however remains intact and markets currently are seeing a phase of consolidation."

Sahaj Agarwal, head of derivatives at Kotak Securities, expects Nifty to trade in the range of 11700-12100. "Short-term selling pressure is expected to push the index towards 11700-11750. Broader health of the market is also negatively biased for the near term. This correction provides with an excellent buying opportunity from the medium term perspective," he said.

India's industrial output fell at the fastest pace in over six years in September, adding to a series of weak indicators, data released after Monday's market hours showed. Indian markets were closed on Tuesday for a holiday.

“Dismal IIP performance for the second consecutive month points to a deep slump in economic activity. The weakness was broad-based across a mix of consumption and investment indicators. Owing to weak momentum and lack of any impetus, we revise down our FY2020 GDP growth estimate by 80 bps to 5%," Kotak Securities said in a note.

“Even though inflation is likely to breach the MPC’s target of 4%, we expect the MPC to cut the repo rate by another 50 bps through the rest of FY2020," the brokerage added.

Asian markets sank today after US President Donald Trump failed to give investors enough reassurance over the progress of China trade talks. In a much-anticipated speech on Tuesday, the president went into election mode, hailing a strong economy and saying a trade deal was close but also warning that he could ramp up tariffs if he did not get his way.

Global equities have been on a roll for weeks on optimism the economic superpowers will hammer out a mini deal as the first part of a wider agreement. (With Agency Inputs)

Close