The US markets suffered sharp drop on Tuesday, though the economic news were not that bad but the markets pared their early advances after a Federal Reserve official said he believes it's unlikely the central bank's third round of quantitative easing will meaningfully boost the economy. Also, the pessimistic outlook from multinational manufacturer Caterpillar weighed on the sentiments, which cut its 2015 profit outlook, warning that weaker commodity prices would result in a bigger-than-expected decline in demand. In economic news, US single-family home prices rose for a sixth month in a row in July, though the improvement was not as strong as expected, while another report showed consumer confidence jumped to its highest level in seven months in September, as Americans were more optimistic about the job market and income prospects.
The Dow Jones Industrial Average fell by 101.37 points, or 0.75 percent, to close at 13,457.50, the S&P 500 finished down by 15.30 points, or 1.05 percent at 1441.59, while the Nasdaq slid by 43.06 points, or 1.36 percent to settle at 3117.73.
Indian ADRs closed mostly in red on Tuesday, HDFC Bank was down by 0.21%, ICICI Bank was down by 0.67%, Infosys was down by 0.77%, Tata Motors was down by 0.80% and Wipro was down by 0.11%.