Equities deepen losses as worries over economy resurface

Benchmark equity gauges furthered losses on Tuesday after investors fretted over IMF's comment that the Indian economy is in the middle of a "significant" slowdown.

Participants also appeared cautious ahead of December month F&O expiry and year-end holidays.

After trading on a volatile note through the day, the 30-share BSE Sensex ended 181.40 points, or 0.44 per cent, lower at 41,461.26.

Similarly, the broader NSE Nifty closed 48.20 points, or 0.39 per cent, down at 12,214.55.

Last-hour selling mainly in index heavyweights Reliance Industries and HDFC twins dragged the benchmark indices lower.

In percentage terms, HCL Tech was the top loser in the Sensex pack, dropping 1.80 per cent, followed by RIL, HDFC Bank, TCS, Tech Mahindra, L&T, Maruti, Bajaj Finance and HDFC.

On the other hand, top gainers included IndusInd Bank, ONGC, Bharti Airtel, Hero MotoCorp and NTPC.

Sectorally, BSE energy, oil and gas, capital goods, IT, teck and industrials ended up to 1.21 per cent lower. On the other hand, BSE metal, realty, telecom, power and utilities indices settled up to 0.64 per cent higher.

In the broader market, BSE midcap and smallcap indices ended on a flat note.

With investor participation turning thin on account of year-end holidays and December series derivatives expiry on Thursday, traders and investors turned cautious awaiting fresh cues, analysts said.

The market will remain shut on Wednesday on account of Christmas Day.

"IMF's statement that India is in the middle of a significant economic slowdown pushed the market into the negative terrain on Tuesday. Persisting weakness in rupee and a gradual surge in crude prices also turned the market sentiment gloomy. It has been a double whammy for emerging markets like India," Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities, said.

Bourses in Shanghai and Tokyo ended on a positive note, while those in Hong Kong and Seoul settled in the red.

Europe was trading higher in their respective early sessions.

On the currency front, the Indian rupee depreciated by 9 paise to close at 71.27 against the US dollar.

Brent futures, the global oil benchmark, advanced 0.08 per cent to USD 66.44 per barrel.