For the second consecutive session, share market indices suffered losses as the sentiment remained bearish irrespective of a plethora of surveys claiming improvement in macro-economic scenario. 

The volatility seen since early March immediately after the Budget 2015-16 was presented by finance minister Arun Jaitley is likely to persist until the riddle of minimum alternate tax to be levied on foreign investors is permanently solved, say analysts. They also link the recovery in stock prices to onset of the monsoon. 

The exuberance that enthralled Dalal Street last May after Narendra Modi assumed power at the Centre is missing on completion of one year in the office, say analysts. 

The year has been marked by many ups and downs, taking equity indices on roller-coaster rides on several occasions. 

Between 15 May 2014 and 4 March 2015, the 30-stock Sensex spiked from 23,905.60 points to 30,024.74 points – p 6119.14 points or more than 25 per cent. 

But it fell steeply on multiple concerns, mostly affecting foreign portfolio investors who still are in a mood to withdraw citing not only MAT but also because of reforms hindered by blocked GST and land acquisition Bills in Parliament. However, overall on the first anniversary, the BSE benchmark is up 16 per cent. 

The 30-share Sensitive Index of the Bombay Stock Exchange lost further ground on Tuesday, closing 0.41 per cent or 112.47 points down at 27,531.41 points. The 50-stock Nifty of the National Stock Exchange was down 0.37 per cent or 30.90 points at 8,339.35 points.  

A spate of reports released by global bankers and brokerages like Barclays, Bank of America-Merrill Lynch, Nomura, CLSA and others reaffirm their confidence in the India story but are unanimous in blaming the current downtrend in equity markets on sluggish revival of the economy. 

The corporate earnings are below estimates, they say. Banks’ asset quality needs improvement. The lenders are just emerging from the worst period of their non-performing assets. The credit offtake is not picking up as banks struggling with modest profits are unable to pass on the benefit of two successive rate cuts – repo rate now at 7.50 per cent – since January this year. 

The markets now look forward to yet another cut of at least 25 basis points or 0.25 per cent by RBI Governor Raghuram Rajan in his bi-month policy review on 2 June. 

Some bankers claim the transmission of benefit would be possible only if the central bank also slashes CRR or cash reserve ratio from the current four per cent. The lenders have linked lending to availability of additional liquidity. 

Meanwhile, Adani Enterprises share surged to an intra-day all-time record high of Rs 803.90, up 2.2 per cent, on report that the company has fixed 4 June date for the proposed separation of its transmission business into a separate entity. 

The stock has been rising since April when the news first broke out. It is now up 29.7 per cent since April and 64.66 per cent year to date. Adani Enterprises on Tuesday ended at Rs 792.85, gaining 0.82 per cent on the BSE and at Rs 793.50, up 0.92 per cent, on the NSE. The market capital of the company stood at Rs 87,198.44 crore. 

In 30-share Sensex, 14 stocks advanced and 16 declined. Coal India for its excellent performance was up 1.41 per cent at Rs 374.95 while ONGC was down 2.05 per cent at Rs 322.55.