Sensex tumbles 250 points, Nifty slips below 11,500; Titan tanks 8%

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NEW DELHI: Domestic benchmark indices extended their fall into the third consecutive session on Tuesday ahead of the start of the June quarter earnings season. 

Fears over the applicability of proposed higher tax on foreign portfolio investors and weak global cues, that dragged flagship indices over 2 per cent lower in the previous session, continued to plague Dalal Street.

Earnings season kicks off today and the markets would keep a close watch on the stock of IT major Tata Consultancy ServicesNSE -1.18 % which is expected to report a 2.5-3.2 per cent quarter-on-quarter (QoQ) rise in revenue growth in constant currency (CC) terms. Profit is expected to drop 4-6 per cent sequentially while margins are seen falling 90-150 basis points, led by wage hikes. Shares of the firm were trading 2 per cent lower on BSE. 

Domestic currency too declined on Thursday, falling 15 paise against the US dollar to 68.80. 

Shares of jewellery maker Titan slipped over 8 per cent after the company in its quarterly update on Monday, said it witnessed a tough macro-economic environment with consumption being hit during April-June quarter due to rising gold prices. “Against this background, the company’s growth, particularly in the jewellery segment, was lower than planned even though the gains in market share were sustained,” the firm said in an exchange filing. 

At around 9:30 am, the 30-pack Sensex was down 243 points or 0.63 per cent at 38,478. Nifty shed 75 points or 0.65 per cent to trade below the 11,500-mark at 11,484. 

In the Nifty pack, 21 stocks gained, 29 declined while one remained unchanged. Among Sensex stock, 13 gained while 17 fell. 

Yes BankNSE 1.81 % was the biggest gainer, up 2.47 per cent, after the private sector lender clarified about management stability and appointed two management leaders. 

Sun Pharma, ONGC, Hero MotoCorpNSE -1.80 %, Vedanta and L&T were other gainers rising upto one per cent. 

HDFC ruled the red zone, declining 1.84 per cent. Kotak Mahindra BankNSE 0.89 %, Asian Paints, Bajaj Finance and HUL were other losers. 

BSE Midcap and BSE Smallcap index lost 0.32 per cent and 0.29 per cent respectively. 

On the sectoral front, Oil & Gas was the biggest loser, down 1.16 per cent. 

Elsewhere, Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent in early trade, after falling 0.6 per cent the previous day. Japan’s Nikkei rose 0.5 per cent.