Key benchmark indices tumbled for second consecutive day on Tuesday, following a surge in global crude oil prices after attacks on Saudi Arabia's oil facilities. Selling was seen across all sectors with auto and realty shares declining the most.

The barometer index, the S&P BSE Sensex, fell 642.22 points or 1.73% to 36,481.09. The Nifty 50 index fell 185.90 points or 1.69% to 10,817.60.

After opening at 11,000 mark, the 50-unit Nifty quickly descended in the morning trade. The index continued its downtrend and breached 10,900 mark in the afternoon. The Nifty managed to stabilize at 10,800 level and closed above that level. NSE India VIX jumped 6.97% to 15.995.

In the past two sessions, the Nifty has fallen 258.30 points or 2.33% while the Sensex has fallen 903.90 points or 2.42%.

The market breadth was weak. On the BSE, 857 shares rose and 1668 shares fell. A total of 147 shares remain unchanged. The S&P BSE Small-Cap index fell 1.84%. The S&P BSE Mid-Cap index fell 1.77%.

In the commodities market, Brent crude for November 2019 settlement was down $1 at $68.02 a barrel. The contract surged $8.80 or 14.61% to settle at $69.02 a barrel in the previous trading session after drone attack on Saudi Arabia's oil facilities forcing the kingdom to cut its oil output by half. State oil giant Saudi Aramco said the attack cut output by 5.7 million barrels per day.

India is heavily dependent on oil imports for satisfying its domestic demand. A high crude price directly maps into a high trade deficit and in turn a high current account deficit (CAD). At the same time, being an important input for the aggregate economy, a crude price shock also leads to a spike in domestic inflation.

Oil Minister Dharmendra Pradhan reportedly said Aramco has assured India that there would be no supply disruption. We have to wait to know the actual impact on Indian market, he added.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.8975, compared with its close of 71.60 during the previous trading session.

In the commodities market, MCX Gold futures for 4 October 2019 settlement fell 0.29% at Rs 38,071.

On the equity front, private sector banks declined. Axis Bank (down 4.62%), IndusInd Bank (down 3.12%), Yes Bank (down 2.91%), ICICI Bank (down 2.76%), RBL Bank (down 2.33%), Federal Bank (down 2.11%), HDFC Bank (down 1.54%), Kotak Mahindra Bank (down 1.46%) and City Union Bank (down 0.28%) tumbled.

Auto shares slumped. Hero Motocorp (down 6.19%), Escorts (down 6.07%), Tata Motors (down 5.13%), Maruti Suzuki India (down 4.39%), Ashok Leyland (down 4%), TVS Motor Company (down 3.98%), Bajaj Auto (down 3.39%), Eicher Motors (down 2.89%) and Mahindra & Mahindra (down 2.48%) slumped.

Realty shares crashed. Prestige Estates (down 8.04%), Peninsula Land (down 6.8%), HDIL (down 4.85%), Sobha (down 4.78%), Oberoi Realty (down 4.58%) and Sunteck Realty (down 3.75%) slumped.

Realty major DLF fell 3.68%. The firm announced that it has sold over 9 acres of land located in Sector 74 A in Gurugram to American Express (India) for Rs 32 crore an acre. The proposed extension of the Gurugram metro route passes through SPR opposite the land acquired by American Express and so will be the planned Rapid Rail between Delhi & Alwar.

Shares of State Trading Corporation of India slumped 19.61% at Rs 107.40 while MMTC slumped 16.57% to Rs 20.65 after media reports suggested that the government is looking to shut operations. The government is also planning to shut operations of unlisted Project and Equipment Corporation of India (PEC).

Trade minister Piyush Goyal on Tuesday was quoted by the media as saying that the government will shut down state-owned trading companies such as State Trading Corporation (STC), Project and Equipment Corporation (PEC) and MMTC one by one as the government has no business of remaining in such businesses. Slowly the original purpose of these public sector units have come to an end. It's not the business of the government to remain in such businesses. The government should not run companies only for gold imports. We have started the discussion and will close them down one by one. The companies have not covered themselves with glory, Goyal reportedly told the media.

Tata Communications closed at Rs 273. The board of directors of Tata Communications fixed Wednesday, 18 September 2019, as the record date for determining the shareholders who shall be eligible to receive the equity shares of Hemisphere Properties India (HPIL). Tata Communications on 7 August said its scheme of arrangement for demerger of surplus land from the company to HPIL had received approval from the Ministry of Corporate Affairs (MCA). As per the demerger plan, the company would transfer the surplus land to HPIL after consequent issue of equity shares by HPIL to the shareholders of the company. HPIL shall issue and allot one equity share to each member of Tata Communications.

Kaveri Seed Company rose 0.93% to Rs 533.45. The company said that a meeting of the board of directors of the company is scheduled on 24 September 2019, to consider and approve the proposal of buyback of equity shares of the company. The announcement was made after market hours yesterday, 16 September 2019.

IndiaMART InterMESH bucked weak market trend and rose 2.45% to Rs 1692.65 after hitting a record high of Rs 1,725 in intraday today. The stock entered stock exchanges on 4 July 2019 and was listed at Rs 1180, a premium of 21.27% to the initial public offer (IPO) price of Rs 973.

Overseas, most European markets recovered from early lows while most Asian markets closed on a mixed note as the flight from risk assets continued in the wake of devastating weekend attacks on Saudi Arabia's oil industry.

China's industrial production grew at the weakest pace in 17-1/2 years last month and fixed-asset investment in January-August increased at a slightly lower rate than expected, data showed.

US stocks fell on Monday after weekend attacks on Saudi Arabia's oil facilities added to investors' concerns about geopolitical risk and a stumbling global economy.

US President Donald Trump on Monday reportedly said it looks like Iran was behind the attack, but suggested no military response was imminent. The Saudi government reportedly called the attack an unprecedented act of aggression and sabotage but stopped short of directly pinning blame on Iran.

Meanwhile, Tehran reportedly denied responsibility for the strike, which knocked out about half of Saudi Arabia's oil production.

Investors are looking forward to a meeting of the Federal Reserve's interest-rate setting committee beginning Tuesday and concluding Wednesday, after which Chairman Jerome Powell will announce the central bank's latest policy decision. Expectations are that the Fed will cut interest rates a second time this year.

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