India's benchmark equity indices extended losses until midday on Tuesday after opening higher, as most buyers remained on the sidelines amid the ongoing election and high valuation. Gains in fast-moving consumer goods stocks cushioned the losses.
At 12:05 p.m., the NSE Nifty 50 was down 167.05 points, or 0.74%, at 22,275.65, and the S&P BSE Sensex was 496.67 points, or 0.67%, lower at 73,398.87.
The market is witnessing subdued activity and will continue to remain sideways with a negative bias, according to Ajit Rambhia, founder and chief executive officer of Ajira Ventures. He advises investors to keep the minimum downside risk in mind during the election phase.
For Nifty, 22,375 will act as a support, and 22,600 will be the resistance. Bank Nifty is expected to trade in the range of 48,650-49,500, he said.
Shares of Hindustan Unilever Ltd., ITC Ltd., Nestle India Ltd., Britannia Industries Ltd., and Tata Consultancy Services Ltd. cushioned the fall in Nifty.
While those of Reliance Industries Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Power Grid Corp. Of India, and Axis Bank Ltd. weighed on the index.
Broader indices underperformed their benchmark peers. The S&P BSE Midcap was trading 1.8% lower and the S&P BSE Smallcap fell 1.6%.
All sectoral indices on BSE fell, except S&P BSE Fast Moving Consumer Goods, which rose nearly 2%. S&P BSE Realty was the worst performer.
Market breadth was skewed in the favour of the sellers. Around 2,670 stocks declined, 966 rose, and 133 were unchanged on the BSE.
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