Indian markets on Tuesday delinked themselves from the global rebound as US stocks held steady after Japan’s market soared earlier in the day to bounce back from its worst loss since 1987.

The benchmark Sensex zoomed nearly 1093 points but fizzled out to close with loss of 166 points at 78593.07 points amid selling in auto and banking counters.

The weakness in the bourses spilled over to the forex markets with the rupee closing at an all-time low of 83.95 against the dollar.

Market circles said equities were likely to remain under pressure because of global headwinds even as investors await the outcome of the RBI’s monetary policy committee meeting on Thursday and any off-cycle rate move by the US Federal Reserve.

The NSE Nifty declined 63.05 points or 0.26 per cent to settle below the 24000 level at 23992.55.

The trend in the Asian markets was largely positive with the Nikkei jumping 10.23 per cent, its best show reportedly since October 2008.

In Europe most of the indices were trending higher up to 0.23 per cent, while the markets were trading in the green in the US.

“Our markets started the day on a positive note as the global markets hinted at a recovery post Monday’s sharp correction. However, as the day progressed, we witnessed selling pressure and the Nifty ended the day on a negative note below 24000,” said Ruchit Jain, lead research, 5paisa.com.

“The sell-off during the day clearly indicates continuation of the nervousness amongst market participants and technically too, there are no signs yet of markets forming a strong support base,’’ Jain said.

“The domestic market tried to rebound mirroring the Asian markets. However, momentum was short-lived. Investors are watching the appreciating yen, weak US economic data, and rising geopolitical tensions,” Vinod Nair, head of research, Geojit Financial Services, said.

Rupee drop

The rupee settled close to the 84 mark at 83.95 after dropping to a record intra-day low of 83.96 amid foreign fund outflows and the greenback remaining firm overseas.

Dealers do not rule out the possibility of the rupee crossing the psychological 84 level, though the Reserve Bank of India (RBI) could also intervene aggressively in the event of a big drop.

“Investors may watch out for RBI’s decision this week. USD-INR spot price is expected to trade in a range of 83.75-84.20,” Anuj Choudhary — research analyst at Sharekhan by BNP Paribas said.