MUMBAI: Extending losses for a second consecutive session, key Indian equity indices on Tuesday closed in the red, riding on negative cues from Asian markets along with disappointing macro-inflation data points.
According to market observers, investor sentiments were subdued as higher-than-estimated inflation numbers and surge in oil prices dented the chances of a rate cut in the December policy meeting of the Reserve Bank of India.
On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) dipped by 38.35 points, or 0.38 per cent, to close at 10,186.60 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,941.87 points -- down 91.69 points or 0.28 per cent -- from Monday's close.
The BSE market breadth was bearish -- 1,556 declines and 1,141 advances.
"Markets slid further on Tuesday to close with losses for the second consecutive session. The weakness came on the back of dampening of possibility of the central bank cutting interest rates next month after inflation picked up in October," Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
Official data released on Tuesday showed that India's annual rate of inflation based on wholesale prices (wholesale price index) rose to 3.59 per cent in October due to an exponential rise in food prices.
In addition, data released on Monday revealed that the consumer price index (CPI) inflation for October rose to 3.58 per cent from 3.28 per cent in September.
"Weak Asian cues also negatively influenced trading sentiments," Jasani added.
In terms of the broader markets, the BSE mid-cap closed lower by 0.22 per cent and the small-cap index by 0.18 per cent.
On the currency front, the rupee closed flat at 65.42 against the US dollar from its previous close.
Vinod Nair, Head of Research, Geojit Financial Services, said: "Volatility emerged as hopes of a near-term rate cut by the RBI has faded, given the spike in October CPI inflation to 3.58 per cent.
"Global cues were not helping either amid uncertainty over the US tax reform, slowdown in Chinese factory output and growing political issues in the United Kingdom," he added.
Sectorwise, the S&P BSE capital goods index plunged by 260.55 points, followed by oil and gas index by 139.03 points and metal index by 90.19 points.
On the other hand, the S&P BSE consumer durables index rose by 129.50 points, automobile index by 57.54 points and realty index by 16.85 points.
Provisional data with the exchanges showed that foreign institutional investors purchased stocks worth Rs 2,576.98 crore, while domestic institutional investors divested scrips worth Rs 1.30 crore.
Major Sensex gainers on Tuesday were: Hero MotoCorp, up 1.96 per cent at Rs 3,653.65; Bajaj Auto, up 1.71 per cent at Rs 3,266.40; Axis Bank, up 1.57 per cent at Rs 546.25; Mahindra and Mahindra, up 1.34 per cent at Rs 1,429.90; and Reliance Industries, up 1.26 per cent at Rs 886.20.
Major Sensex losers were: Larsen and Toubro, down 2.46 per cent at Rs 1,209.85; Power Grid, down 2.20 per cent at Rs 206.75; Asian Paints, down 1.77 per cent at Rs 1,154.25; Tata Consultancy Services, down 1.53 per cent at Rs 2,716.75; and ONGC, down 1.25 per cent at Rs 182.