Indian shares ended lower for a second consecutive session on Tuesday, as losses in lenders hit by a Morgan Stanley downgrade and drugmakers hurt by US Food and Drug Administration's regulatory action offset gains in index heavyweight ITC Ltd. The broader NSE index ended 0.1 percent lower at 9,121.50, while the benchmark BSE index also closed 0.1 percent lower at 29,485.45.
Analysts expect a period of consolidation ahead as investors focus on individual stock movements as they wait for the earnings season to start in mid-April. "The markets have been trending up since December. I think this week market may just cool off," said Sacchidanand Uttekar, equity technical analyst at Motilal Oswal Securities.
"There will be profit booking in major index-contributing stocks including Reliance Industries." Banks were among the biggest losers after Morgan Stanley downgraded a slew of large Indian lenders, citing expectation of weak earnings. Axis Bank fell 2.72 percent and ICICI Bank lost 0.80 percent.
Drug makers slumped on worries of regulatory action from the US Food and Drug Administration. Divi's Laboratories Ltd fell as much as 20 percent following an import alert issued by the USFDA on products manufactured at its Visakhapatnam unit Shares of Avenue Supermarts Ltd more than doubled in value on their trading debut. Analysts expect strong potential for its supermarkets and retail stores. Bharti Infratel was up more than a percent after Nettle Infra Investments bought about 21.63 percent stake in co from promoter Bharti Airtel.