The SENSEX Index Closes 1.16% Lower

India’s BSE Sensex closed about 1.2% lower at 76,201 on Tuesday, reversing yesterday's advance, as investors booked profits across IT, metals, banking and financial counters. Market sentiment was dented by persistent foreign outflows, prospects of higher US interest rates and softer business activity data. A preliminary PMI survey showed India’s private sector growth eased in June, with services at a 17-month low and manufacturing at a three-month low. The IT sector was the hardest hit amid a global tech selloff, with Jefferies and Morgan Stanley highlighting weak demand signals following a subdued outlook from Accenture Plc. Infosys and TCS fell more than 3% each. Tata Steel fell 2.7%, tracking weaker global metal prices, amid concerns over a potential Fed rate hike. HDFC Bank and ICICI Bank shed 1.5% and 1%, respectively. On the upside, pharma stocks such as Sun Pharma rose 0.2% after reports that the US regulator contacted Indian drugmakers to supply a key cancer treatment drug.

The SENSEX Index decreased 893 points or 1.16 percent on Tuesday to close at 76201 points. The decline was led by Infosys (-3.42%), Tata Consultancy (-3.20%) and Tata Steel (-3.00%).

India’s BSE Sensex opened little changed at 77,125 on Tuesday, after posting gains in the previous session as investors paused following a strong rally over the past week and assessed global market cues. Market participants remained focused on developments in global energy markets, with lower oil prices helping to support the outlook for the world's third-largest oil importer. At the same time, investors monitored expectations for US monetary policy, as uncertainty surrounding the Federal Reserve's interest-rate path weighed on risk appetite across Asian markets. On the data front, investors also await India’s HSBC Composite PMI flash reading for June later today for fresh clues on the strength of economic activity. Among notable gainers were Pace Digitek (10.7%), EMS (9.4%), Piramal Pharma (9%), and Kirloskar (6.9%), while the main losers included Vedanta (-6.3%), Infosys (-2.7%), and Paras (-2.6%).