The market ended sharply lower on Thursday after three consecutive sessions of gains.
While the Sensex plunged 318 points or 0.81 per cent to 38,897, the Nifty Index ended 90.6 points or 0.78 per cent lower at 11,596.9.
The selling emerged on the back of weak global cues after reports that trade negotiations between US and China are at an impasse over restrictions on Chinese tech giant Huawei. The broad market indices like the BSE Mid-Cap and Small-Cap fell more, underperforming the Sensex/Nifty. The market breadth was negative on the BSE/NSE.
Sectorally, there were no gainers. The top losers were the BSE Auto, Metal, Oil and Gas and Power indices.
Technical View
"Technically, with the Nifty correcting sharply, the bears seem to have made a comeback. Further downsides are likely once the immediate support of 11582 is broken. Any pullback rallies could find resistance at 11677," said Deepak Jasani, Head Retail Research, HDFC Securities.
India's monsoon rains were 20 per cent below average in the week ending on July 17, the weather office said, as summer showers turned patchy over the central, western and southern parts of the country, raising concerns over the progress of crop plantings. Overall, India has received 16 per cent below average rain since the monsoon season began on June 1.
Market View
"The Nifty couldn't surpass its crucial hurdle at 11700 and lost nearly a per cent. Weak global cues combined with mixed earnings announcement triggered feeble start. It gradually inched lower as the day progressed and settled around the day's low. Mostly sectoral indices traded in tandem with the benchmark Index and the broader indices remained under pressure," Ajit Mishra, Vice President - Research, Religare Broking Ltd.
He added we do not see this pressure easing anytime soon, citing mixed earnings announcements and not so supportive global cues. Traders have no option but to align their positions accordingly and use rebound to create shorts in the benchmark index. Also, we suggest preferring hedged bets instead of naked trades on stock specific front, especially before the result announcement.
