A morning walk down Dalal Street | Nifty must hold above 10,300 for upmove towards 10,500

Indian market wiped out gains in the last one hour of the trading session on Tuesday.

The S&P BSE Sensex fell by 174 points to close below 34300 while the Nifty50 saw a decline of 47 points to close at 10,301. The rise in crude oil prices as well as fall in rupee dented sentiment.

The rupee dipped to a fresh record low of Rs 74.36/$ while crude is now hovering near $85/bbl. Tata Motors was the top Sensex loser, down 13 percent. It hit a 7-year low after JLR reported 12.3 percent YoY fall in total retail sales to 57,114 vehicles in September 2018 hit by lower demand in China.

Investors lost more than Rs 8000 crore in market cap in Tata Motors. Rupee will be one big factor to watch out in today’s trade as well. The currency closed at a fresh record low of 74.39/$ amid rising crude, trade war concerns.

Analysts attribute the fall to higher US bond yields, a trade war between the US and China along with the political turmoil in Europe. Also, the rise in US bond yields are fuelling fears that global investors will withdraw their funds from global markets and park in US treasuries is affecting the global markets, suggest experts.