Selling pressure gripped the market ahead of expiry day of derivative contracts for June along with rising oil prices.
A sell-off in auto, PSU banks, energy and infrastructure names dragged the market from its high points, while midcaps’ correction also added to D-Street’s woes.
The market has currently ended at the low point of the day, with the Sensex falling 400 points from the high point. The Nifty has ended below the 50-day moving average level of 10,685, shedding almost 1 percent in trade.
Selling pressure gripped the market ahead of expiry day of derivative contracts for June along with rising oil prices. They ended up being top index losers. Having said that, some support was seen on the side of largecap IT and pharmaceutical names, which ended in the green.
The 30-share BSE Sensex fell 272.93 points to 35,217.11 and the 50-share NSE Nifty declined 97.80 points to 10,671.40 while the Nifty Midcap index shed 277 points on weak market breadth. About four shares declined for every share rising on the BSE.
Reliance Industries, ICICI Bank, HPCL, BPCL, IOC, Bajaj Finance, L&T ITC and Bajaj Finserv are top contributors to the Nifty's loss.
Stocks in the news
Shares of IDBI Bank fell 7 percent after media report indicated that the lender will soon become a subsidiary of country's largest insurance company LIC.
Meanwhile, PNB Housing ended a quarter of a percent higher after it plans to raise up to Rs 10,000 crore by issuing bonds through public issue.
IndusInd Bank, on the other hand, ended a percent lower after touching a fresh high as it decided to acquire infra lender IL&FS' brokerage business.
Among others, Raymond, Arvind, Adani Enterprises, Reliance Communications, Reliance Power, IDBI Bank, CG Power, PFC, REC, Jet Airways, Jaiprakash Associates, NBCC, Manali Petrochemicals, KRBL, Syndicate Bank, Meghmani Organics, Delta Corp, Adani Power and Phillips Carbon Black declined up to 12 percent. Mphasis, KPIT Tech, Cyient, Hexaware, Mindtree, Dabur, Godrej Consumer, Voltas and Havells gained up to 6 percent.
Technology stocks rallied smartly on Wednesday, with the IT index gaining around half a percent after the rupee touched fresh 19-month low of 68.54 against the dollar.
Tech Mahindra was the biggest gainer among IT stocks, rising 4 percent while KPIT Technologies, TCS and HCL Technologies rallied around a percent.
Share prices of oil marketing companies traded sharply lower on Wednesday after crude oil prices started trading above $76 a barrel.
Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation declined 7 percent each.
On the global front, Asian markets closed lower, led by the drop in Chinese stocks amid lingering trade worries. China's Shanghai Composite was down 1.11 percent and Hong Kong's Hang Seng shed 1.82 percent while Japan's Nikkei lost 0.3 percent.
European stocks recovered from day's low to trade flat at the time of writing this article.Crude oil prices traded higher on a supply disruption in Canada, uncertainty over Libyan exports and declining US crude stocks, and after US officials said all countries should stop buying Iranian crude from November. Brent crude futures were at $76.72 a barrel, up 0.54 percent from the last close.