The Indian equity benchmarks fell sharply on Wednesday dragged by index heavyweights like HDFC Bank, HDFC, Kotak Mahindra Bank, Tata Consultancy Services, Infosys and Hindustan Unilever. The benchmarks opened lower and extended losses in noon deals owing to weakness in private sector banking, pharma and information technology shares. The Sensex fell as much as 518 points and Nifty 50 index briefly fell below its important psychological level of 15,200.
The Sensex ended 400 points lower 51,703.83 and Nifty 50 index fell 105 points to close at 15,208.90.
“Nifty formed lower top lower bottom formation on Feb 17 after the recent rise, raising concerns about the rally getting tired. However an equal advance decline ratio on a negative day means that some bottom fishing has happened in stocks that have corrected over the last few days. 15112-15170 could be the next support band for Nifty. On rise 15340 could act as a resistance,” said Deepak Jasani, head of retail tesearch, HDFC Securities.
Nifty Financial Services, IT, Private Bank, FMCG, Bank and Realty indexes also fell between 0.5-1.3 per cent.
On the other hand, PSU bank witnessed strong buying interest for second day in a row on privatisation buzz. The gauge of state-run lenders – Nifty PSU Bank index climbed nearly 6 per cent. Media, auto and metal indexes also closed higher.
Nestle India was the top loser in the Sensex pack, shedding around 3 per cent, followed by Bajaj Finserv, Asian Paints, IndusInd Bank, Maruti, HDFC twins and Dr Reddy’s.
On the other hand, SBI, PowerGrid, NTPC and Reliance Industries were among the gainers.
According to Binod Modi Head-Strategy at Reliance Securities, domestic equities witnessed pullback amid weak global cues.
“Profit-booking was visible in IT, Pharma and FMCG space, while PSU Banks continued to see investors’ interest with PSU Bank index rising briskly by over 6 per cent,” he said.
Rotational trading was seen, where a number of mid cap and small cap stocks witnessed sharp uptick as improving earnings visibility is attracting investors to this space especially in sectors which are considered to be beneficiary of higher capex, he added.
Stock exchanges in Europe were also trading with losses in mid-session deals.
Meanwhile, the global oil benchmark Brent crude was trading 0.58 per cent higher at USD 63.71 per barrel.
Mid- and small-cap shares ended on a mixed note as Nifty Midcap 100 index rose 0.3 per cent while Nifty Smallcap 100 index ended on a flat note.
Nestle India was top Nifty loser, the stock fell 3 per cent to close at ₹ 16,700 after its December quarter earnings missed expectations. Asian Paints, Maruti Suzuki, Bajaj Finserv, HDFC Bank, Divi’s Labs, IndusInd Bank, Dr Reddy’s Labs, HDFC, Wipro and Cipla also fell between 1.6-2.6 per cent.
On the flipside, Adani Pots rose nearly 3 per cent to close at ₹ 654 after it completed the acquisition of Dighi Port for ₹ 705 crore. Adani Ports will invest more than ₹ 10,000 crore in developing Dighi Port as an alternate gateway to JNPT, the company said in a regulatory filing to the stock exchanges. This would enable APSEZ to service customers in Maharashtra and development in the Mumbai and Pune regions.
Comments Hero MotoCorp, Bharat Petroleum, State Bank of India, Power Grid, GAIL India, HDFC Life, Coal India and NTPC also rose between 1.2-3 per cent.
Equity benchmark Sensex slumped 400 points on Wednesday tracking losses in index majors HDFC twins, Kotak Bank and TCS amid a weak trend in global markets.