"Markets have reacted to weak auto sales data, lower than expected GDP growth number for Q1FY20 indicating that slowdown is more pronounced thus demanding for policy measures on both monetary and fiscal side. The recent measures taken by the Ministry of Finance would help mitigate the risk but more is expected to reverse the trend.
"News flow from global markets is not conducive either; US-China trade conflict has reached a new high with both the nations continuing to talk but at the same time imposing an additional tariff on goods imported from the other nation," Arun Thukral, MD & CEO, Axis Securities said.
From the 30-share basket, 28 scrips suffered losses, led by ICICI Bank, Tata Steel, Vedanta, HDFC, IndusInd Bank and Tata Motors falling by up to 4.45 per cent.
At the BSE, 1,613 scrips declined, while 817 advanced and 178 remained unchanged.
Over 200 stocks were at their 52-week low in Tuesday's trade.
"Sharp fall in Q1 GDP growth and weak core sector growth are the key factors that have caused a fall in the markets.
"The continuing negative global cues, raging tariff war between the US and China and the likely sluggishness in the economic fortunes of economies around the world have also been behind the rot in the markets here as well as elsewhere," said Joseph Thomas, Head of Research - Emkay Wealth Management.
In the broader market, the BSE midcap and smallcap indices too closed up to 1.65 per cent lower.
The rupee plunged 90 paise (intra-day) to trade at 72.27 per US dollar.
"Indian equity markets started the week on a negative note led by muted Q1 GDP number and weak auto sales numbers. In the near term, weak domestic sentiments and uncertain global cues may continue to have negative impact on the Indian markets," said Ajit Mishra, Vice President, Research, Religare Broking Ltd.
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