In the 50-share Nifty index, Tech Mahindra, Hero MotoCorp, Ambuja Cements, HDFC and Bank of Baroda declined the most. (Photo: PTI)
Domestic equity markets closed over 1 per cent lower on Wednesday, giving up gains from the previous session as wary investors shied away from risky bets on fears that a rate cut in China was not enough to stabilise its slowing economy or halt a collapse in stocks.
The BSE Sensex and NSE Nifty tanked 317.72 points and 88.85 points at 25,714.66 and 7,791.85, respectively.
Barring the BSE Power index and the BSE Metal index, which closed up 1.64 per cent and 0.23 per cent, respectively, rest all other indices on the Bombay Stock Exchange ended in red. The BSE Bankex plunged the most — 1.68 per cent at 19,394.95, it was followed by BSE Healthcare index (down 17,194.56) and BSE TECK index (down 1.04 per cent at 5,928.04).
In the 50-share Nifty pack, Tech Mahindra (down 4.07 per cent), Hero MotoCorp (down 3.83 per cent), Ambuja Cements (down 3.78 per cent), HDFC (down 3.19 per cent) and Bank of Baroda (down 3.09 per cent) remained among the list of top losers. On the other hand, BHEL, Tata Power, Cairn India, Power Grid and Bajaj Auto gained 4.29 per cent, 3.25 per cent, 2.46 per cent, 1.98 per cent and 1.92 per cent and stood among the list of top gainers on the performance chart of the index.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “Concern over China’s economy continues to impact the investors’ confidence across the globe. Due to continued decrease in FIIs confidence, flows to India continue to be weak. Mutual funds are adding their exposure viewing this chaos as an opportunity which is led by global factors. The immediate movement will depend on INR trend for which RBI will have to provide additional support to the rupee. FIIs will come back to the Indian market once the consolidation of global markets end, as we are the best class amongst the emerging markets.”
In a volatile trading session on Wednesday, the BSE Sensex opened at 26,063.27 and touched a high and low of 24,156.61 and 25,654.56. Likewise, NSE Nifty opened at 7,865.25 and touched a high and low of 7,930.05 and 7,777.10.
Among day’s major market moving events, Chinese central bank announced that it would inject a total of 140 billion yuan ($21.8 billion) in the interbank money markets via short term liquidity operations. The facility is mainly used to provide short term (1-3 days) credit lines to commercial banks.
On the domestic front, rupee continue to remain weak against the greenback and depreciated more than 19 paise in the day’s trade, trading below Rs 66.28 a dollar.
Stocks of Just Dial remained in limelight in the day after the company announced plans to buy back shares worth Rs 160 crore. The stock was up more than 4 per cent in the day. However, it closed 1.87 per cent lower than its previous close.
Asian peers, Shanghai Composite Index and Hang Seng dipped 1.27 per cent and 1.52 per cent at 2,927.29 and 21,080.39 while Nikkei gained 3.20 per cent at 18,376.83.
Gaurav Jain, director, Hem Securities, said, “Domestic equity markets shed all Tuesday’s gains and extend losses. Even rate cut by China central bank could not improve the sentiment of the investors across the globe. Continued fall in commodity prices and sell-off by the worried investors triggered the fall in equities worldwide.”
Markets through the day
3.17 pm: Edelweiss Financial Services was trading firm after its subsidiary Edelweiss Tokio Life Insurance got necessary approval from FIPB to increase its FDI cap. Shares of Edelweiss Financial Services were trading 1.39 per cent higher at Rs 54.85.
According to market experts, equity markets may remain volatile in the near future as traders may roll over positions in the Futures & Options (F&O) segment from the near month i.e. August 2015 series to next month i.e. September 2015 series. The near month August 2015 derivatives contracts will expire on Thursday.
3.09 pm: Domestic equity markets continued their weak trade in the late afternoon session on account of selling in blue chip counters. Sensex was down 314 points at 25,718. In the 30-share Sensex pack, HDFC and Hero MotoCorp were down over 3 per cent.
2.06 pm: The BSE Midcap index and BSE Smallcap index were up 0.20 per cent and 0.72 per cent, respectively. Sensex was down 92 points at 25,939.
1.49 pm: Markets are showing choppiness, after recovering from the initial fall and gradually moving back to the highest point of the day, the major indices have once again flattened out. Sensex and Nifty were down 0.05 per cent and 0.07 per cent at 26,020 and 7,885.
1.25 pm: NSE Nifty was down 24 points at 7,856.
12.48 pm: Among the sectoral indices on the Bombay Stock Exchange, the BSE IT index was up around 0.99 per cent at 11,105. Sensex was down 144 points at 25,888.
12.19 pm: Sensex was down 128 points at 25,903.
11.31 am: Indian Oil Corporation (IOC) shares gained over 4 per cent in the morning trade on Wednesday after the oil marketing company on Tuesday (post market hours) informed stock exchanges that it has signed memorandum of understanding (MoU) with Nepal Oil Corp (NOC) to lay a Rs 275-crore oil pipeline from Raxaul in Bihar to Amlekhgunj in Nepal. The scrip was trading 4.56 per cent higher at Rs 412.75. Sensex was up 81 points at 26,113.
10.37 am: Sensex was up 37.80 points at 26,070.18. Nifty was up 22.05 points at 7,902.75
10.18 am: The BSE Sensex and NSE Nifty were down 80 points and 10 points at 25,951 and 7,870, respectively. The BSE Bankex was down 0.57 per cent at 19,613.
9.28 am: In the 50-share Nifty pack, Vedanta, Dr Reddy’s Laboratories, Tata Motors were down 2.26 per cent, 2.19 per cent and 1.73 per cent, respectively.
9.27 am: Indian rupee up 12 paise at 66.16 against dollar.
9.24 am: Asian peers, Shanghai Composite index and Hang Seng were up 0.80 per cent and 0.09 per cent at 2,988.76 and 21,424, respectively.
9.21 am: The BSE Sensex was down over 300 points at 25,720. NSE Nifty was down 81 points at 7,799.
9.15 am: Domestic equity markets opened on a flat note on Wednesday. The BSE Sensex opened 30.89 points higher at 26,063.27. NSE Nifty opened 15.45 points lower at 7865.25.
Shares of capital goods, information technology and healthcare opened in green.
Domestic equity markets on Tuesday opened with a positive gap and later it made a low at 7,667 due to weak Chinese market condition and finally closed on the positive territory due to extreme short term oversold situation, support from both DII and retailers and positive European cues. The 30-share Sensex and 50-share Nifty closed 1.13 per cent and 0.92 per cent higher at 26,032.38 and 7,880.70, respectively.
(With inputs from Reuters)
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