Market Remains On Edge As Broader Economic Challenges Weigh

Indian equities ended lower on Tuesday as caution over broader economic challenges and a sharp rout in Adani group stocks dampened market sentiment, while investors awaited some key economic data due later in the week.

The Nifty 50 index closed 0.20 per cent at 16,951.70, while the S&P BSE Sensex fell 0.07 per cent to 57,613.72. Both benchmarks had risen as much as 0.5 per cent earlier in the session.

Ten of the 13 major sectoral indices declined, with and information technology (IT) stock losing nearly 1 per cent each. High weightage financials rose 0.27 per cent and capped the losses in benchmarks.

“Amid volatile moves in intra-day trades, key indices ended marginally lower and under-performed most of its Asian peers. Barring gains in select banking and metal stocks, other sectors witnessed profit-taking as caution prevailed ahead of the F&O expiry on Wednesday,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

During the day, Adani Group companies slid between 3-7.5 per cent after a report highlighted that the conglomerate was seeking to renegotiate terms of outstanding loans worth USD 4 billion to buy ACC and Ambuja Cements.

Adani Enterprises and Adani Ports were the top drags on the Nifty 50 index.

Investors also awaited the US GDP and jobs data, due on March 30, which could provide insights into the impact of the Federal Reserve's monetary policy on inflation and growth. 

India's current account data due later this week was also eyed by investors.

(With Reuters Inputs)