The main benchmark indexes showed weak trends in daily trading on Tuesday, as Asian markets plunged after Japan’s central bank unexpectedly widened the allowed range for long-term yields to 50 basis points (bps) on either side from 25 bps previously. According to reports, the move will allow long-term interest rates to rise.
After that, Japan’s Nikkei slumped 2.5 percent. Hang Seng and Taiwan also fell nearly 2 percent each. The Shanghai Composite slipped one percent.
Back at home, Sensex and Nifty are each down more than one percent in daily transactions. The BSE benchmark has recouped some losses but is still down 500 points. NSE Nifty is moving around the 18,250 level.
The broader market, too, was slightly lower as the Nifty MidCap 100 and Nifty SmallCap 100 indexes fell 1 percent each. The volatility indicator, India VIX, meanwhile, is up more than 9 percent.
All sectors sank in a sea of red, with the Nifty IT, Nifty Media, Nifty Auto and Nifty Realty indexes dropping the most, more than 1 percent each.
Among individual stocks, shares of Indian Life Insurance Company (LIC) rose more than 3 percent to reach a more than six-month high of Rs 754.40, in daily trading Tuesday, in a weak market. READ MORE
In addition, stock from Indian Dabur fell 3 percent after the personal care products company’s 1 percent equity changed hands over the counter. READ MORE