At the close of market hours, the Sensex closed lower by 169.45 points or 0.45% at 37121.22, while the Nifty was down 44.50 points or 0.39% at 11234.40
Equity benchmarks ended a volatile trading day on a negative note as consumer names as well as banks weighed. The Nifty ended below 11,250-mark, while the Sensex shed a little over 160 points. Rupee heading towards its low points also dented sentiment on the market.
A selloff among major sectors such as banks, automobiles, and FMCG and a larger selling pressure among midcaps weighed on the indices. The Nifty Midcap index ended around a percent lower.
The day began on a good note even as investors looked to shrug off concerns on the trade war front. Late on Tuesday, China also countered US’ import tariffs with fresh set of tariffs on USD 60 billion worth of US goods and services. But a recovery in the rupee from Tuesday’s record low close helped the market trade higher for the first couple of hours. Banks too saw some recovery as compared to Tuesday’s fall and helped indices trade in the green.
But further pressure from consumer names along with banks weighed on the indices. Index heavyweights such as HDFC twins along with Reliance Industries and Bajaj Finserv negatively impacted benchmarks.
At the close of market hours, the Sensex closed lower by 169.45 points or 0.45% at 37121.22, while the Nifty was down 44.50 points or 0.39% at 11234.40. The market breadth is negative as 978 shares advanced, against a decline of 1,667 shares, while 186 shares were unchanged.
Coal India, ONGC, and BPCL were the top gainers while Bharti Airtel, IndusInd Bank, and Bajaj Finserv lost the most.
Stocks in News
Shares of Sun Pharmaceutical Industries closed a percent higher after it received European Commission’s (EC) approval for Ilumetri, a drug used to treat psoriasis.
IL&FS Transportation Networks fell around 3 percent after rising over 9 percent in the morning. The company signed a settlement agreement with NHAI.
MCX rallied nearly 3 percent after the market regulator, Sebi, said that it would soon come out with revised KYC norms for foreign investors and also overseas entities to trade in commodity derivative market.
RITES ended 2 percent higher as it won an additional contract of Rs 436 crore.
Shares of Strides Pharma Science recovered to end 2 percent lower after it plunged 5.6 percent intraday. The company received three observations from the USFDA.
Sheela Foam added 4 percent after Axis Securities initiated coverage on the stock with a buy call. It sees an upside potential of 22 percent.
Sugar stocks were in focus again on Wednesday as investors bet on these names on a possible package announcement of Rs 4,500 crore for the sector. But they gave up gains in the afternoon after it was known that the proposal will be taken for consideration in the next week.
Markets in Europe were higher as investors chose to look past rising trade tensions between US and China. Stoxx 600 index was trading 0.18 percent higher with most sectors in positive territory.Meanwhile, markets in Asia mostly were higher as investors reacted to negative cues such as China imposing additional import tariffs on US goods. ASX 200 rose 0.46 percent to close at 6,190.