The 30-share pack Sensex hit a fresh all-time high of 42,273.87 but failed to hold altitude and ended the day with a loss of 416 points, or 0.99 percent, at 41,528.91.
Nifty also hit a fresh record high of 12,430.50 in early trade but settled 128 points, or 1.03 percent, down at 12,224.55.
Secondary barometers BSE Midcap and Smallcap indices outperformed Sensex, ending 0.57 percent and 0.39 percent lower, respectively.
According to the pivot charts, the key support level for Nifty is placed at 12,150.77, followed by 12,077.03. If the index continues moving up, key resistance levels to watch out for are 12,364.37 and 12,504.23.
Nifty Bank closed 1.61 percent down at 31,080.65. The important pivot level, which will act as crucial support for the index, is placed at 30,779.77, followed by 30,478.83. On the upside, key resistance levels are placed at 31,652.77 and 32,224.83.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
Asian Markets
Asian shares got off to a cautious start on Tuesday lacking any lead from Wall Street and after the IMF shaved its outlook for world growth this year, though it did offer a brighter view on China.
MSCI’s broadest index of Asia-Pacific shares outside Japan was fractionally down 0.04% Moves elsewhere were likewise modest, with Japan's Nikkei down 0.1% and South Korea 0.04%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 66 points loss or 0.54 percent. The Nifty futures were trading around 12,206-level on the Singaporean Exchange.
Oil prices gain on Libya, Iraq supply worries
Oil prices rose on Tuesday after Libya declared force majeure on two major oilfields following a military blockade and protests escalated in Iraq, raising supply concerns.
Brent crude was trading up 11 cents, or 0.2%, at $65.31 per barrel by 0101 GMT. US West Texas Intermediate crude futures were up 20 cents, or 0.3%, at $58.74 a barrel.
India 'biggest contributor' to downward revision in global growth: IMF
The International Monetary Fund (IMF), on J has called India the biggest contributor to the downward revision in growth projections for emerging market and developing economies.
"For emerging market and developing economies, we forecast a pickup in growth from 3.7 percent in 2019 to 4.4 percent in 2020 and 4.6 percent in 2021, a downward revision of 0.2 percent for all years. The biggest contributor to the revision is India, where growth slowed sharply owing to stress in the non-bank financial sector and weak rural income growth," the IMF said in its latest World Economic Outlook report .
Rupee settles 3 paise down at 71.11 against US dollar
The rupee slipped 3 paise to close at 71.11 against the US dollar on Monday, tracking a steady rise in crude oil prices and weakness in domestic equities. Forex traders said the drop in the rupee was largely due to a spurt in crude oil prices following rising tensions in the Middle East and North Africa.
At the interbank foreign exchange market, the local currency opened on a weak note at 71.07 and fell further to a low of 71.15. It finally settled at 71.11, lower by 3 paise against its previous close.
New Indian law to protect foreign investors to exclude tax demands: Documents
New legislation will improve protection for foreign investors in India by offering relief from possible policy changes but will uphold the state's right to tax them, according to its draft and government documents seen by Reuters.
The bill also attempts to upgrade India's investment climate and boost foreign investment by setting up new adjudicating authorities to swiftly resolve disputes. It is part of India's efforts to become a $5 trillion economy by 2024, from around $2.7 trillion currently, the documents said.
The bill proposes to cover a wide range of foreign investors, including investments from sovereign wealth funds, pension funds and insurance funds, the government document said.
IMF cuts global growth forecasts, says bottom may be near
The International Monetary Fund on January 20 trimmed back its 2020 global growth forecasts due to sharper-than-expected slowdowns in India and other emerging markets but said a US-China trade deal was another sign that trade and manufacturing activity may soon bottom out.
The IMF said global growth would reach 3.3 percent in 2020, compared to 2.9 percent in 2019, which was the slowest pace since the financial crisis a decade ago. Estimates for both years were cut by 0.1 percentage point from forecasts made in October. Growth will improve slightly to 3.4 percent in 2021, but that estimate, too, was cut by 0.2 percentage point from October, the Washington-based international crisis lender said.
Global FDI dips, hit by Hong Kong divestment, Brexit: UN
Global direct foreign investment (FDI) dipped slightly around the world last year, hit by massive divestment in Hong Kong and a drop in flows into Britain due to Brexit uncertainty, the United Nations said on Monday.
FDI could rise marginally in 2020 on the back of modest growth as trade tensions between China and the United States ease, but geopolitical uncertainties and protectionist pressures are tempering expectations, it said.
Shri Bajrang Power gets Sebi's go-ahead for IPO
Shri Bajrang Power and Ispat has received markets regulator Sebi's approval to raise up to Rs 500 crore through an initial share-sale. The company, an integrated manufacturer of long steel products in the country, is the first one to get a clearance this year from the regulator to float an IPO.
IDBI Capital Markets & Securities, Equirus Capital and SBI Capital Markets will manage the company's IPO. The equity shares will be listed on BSE and NSE.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 5.87 crore, while domestic institutional investors (DIIs) sold shares of worth Rs 1,419.85 crore in the Indian equity market on January 20, provisional data available on the NSE showed.
With inputs from Reuters & other agencies
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