Also, another reason for the downfall in the market is the rising Covid cases in the US and UK due to the Delta variant, inflation concerns, and concerns about growth coming below consensus expectations.
The market extended losses for the third consecutive session, the BSE Sensex dropped 355 points or 0.68% to 52,199. The Nifty 50 index had earlier recouped some losses and settled at 15,632, down 120 points or 0.76% down.
Midcap and smallcap stocks also witnessed heavy selling pressure as a weak global trend led investors to book profit.
On the earning front, the strong June quarter performance reported by ACC resulted in the cement pack to remain to focus today, while strong earnings from Asian Paints during trading hours aided stock to sharp upmove.
According to data aggregated by Johns Hopkins University, the global tally for the coronavirus-borne illness climbed above 190.9 million on Tuesday, while the death toll climbed above 4.09 million.
Below is the reason for the downfall of the market:
Asian markets fall on virus variant worries
Asian markets fell Tuesday as worries were growing that a faster-spreading variant of the coronavirus could upend the global economic recovery. Japan’s benchmark Nikkei 225 slipped 0.9%, South Korea’s Kospi shed 0.6%, Australia’s S&P/ASX 200 declined 0.5% and Hong Kong’s Hang Seng lost 1.1% to 27,189.43, while the Shanghai Composite fell 0.2% to 3,531.54.
The Nifty FMCG index ended in green with HUL, Marico and Nestle was the top gainer. The Nifty realty and media were down 2.5% each as the worst sectoral index. Followed by Metal stocks witness broad-based selling pressure after Shanghai copper prices hit a near one-month low as a surge in coronavirus cases around the world threatened the outlook of a global economic recovery. At the Nifty Metal index, all stocks were in the red except APL Apollo.
Also, telecom stocks ended lower during Tuesday's trading session after the Supreme Court reserved its order in the adjusted gross revenues (AGR) case.
The Nifty Bank index scrapped over 35,000-level and has nosedived by nearly 650 points so far today. All stocks listed on the index were in the red.
Financial stocks lost 2% and Nifty Pharma lost 1.30% and Nifty Auto lost nearly 1%.
Best & Worst Sensex performers today
Gainers included, Asian Paints (+5.59%), UltraTech Cement (+1.82%), Bajaj Auto (+0.95%), while losers included IndusInd Bank (-3.40%), Tata Steel (-2.65%), Airtel (-2.3%) and NTPC (-2.39%).
India VIX cools down
India VIX continued trimming gains and ended up 4.14% at 13.21 levels.
Broader market in red territory
Broader markets were deep down in the red on Tuesday with the Nifty Midcap 50 was fell 1.67% while Nifty Smallcap 50 was down 14.35%.
Rupee ends higher
Indian rupee ended near the day's high. It opened lower at 74.95 per dollar against the previous closed at of 74.87 against US Dollar.