An evening walk down Dalal Street | Weak global cues weigh on Sensex, Nifty; IT stocks crack

Equity benchmarks continued with their downtrend for second consecutive day, in tandem with global markets, with Nifty holding 10,600.

A global sell-off mirrored in the Indian markets as well, while a recovery in crude oil prices weighed on benchmarks.

The day began on a somber note, with benchmarks opening around flat terrain, but a recovery in financials helped market stay in the positive region for a brief period. However, a selloff in major names, especially in the IT space, dragged indices lower.

Last hour saw some marginal recovery in financials as well as midcaps, helping the market close off low points.

The Nifty IT index was the big loser along with energy stocks as well. Meanwhile, pharmaceuticals and PSU banks were the big gainers. In the broader markets, Nifty Midcap index rose over half a percent.

At the close of market hours, the Sensex was down 274.71 points or 0.77% at 35199.80, while the Nifty ended down 56.20 points or 0.53% at 10600.00. The market breadth was negative as 1,256 shares advanced, against a decline of 1,305 shares, while 136 shares were unchanged.

Yes Bank, Axis Bank, and Dr Reddy’s were the big gainers, while TCS and Infosys lost the most.

Stocks in News

Shares of Dr Reddy’s Labs gained 6 percent as after the company won a major legal battle against Indivior in the US. An Appeals Court vacated the preliminary injunction order of a federal court, which blocked Dr Reddy’s from selling generic version of opioid treatment drug, Suboxone.

Bank of Baroda’s shares gained 1 percent after the public sector lender sold its stake in the Clearing Corporation of India (CCIL).

Excel Industries shares climbed 3 percent intraday after a rating agency upgraded company's long term rating.

Minda Corporation shares rallied 7 percent after the company reduced its stake in joint venture by selling to Japanese partner.

After buying agrochemical company in Costa Rica by the subsidiary, UPL shares gained more than 2.5 percent.

Adani Gas was locked in 20 percent upper circuit at Rs 97.80 on Wednesday after the company expanded its pan-India presence by bagging 13 city gas distribution (CGD) projects.

ITI stock climbed 4 percent after the company listed out reasons for rising share volume recently. It rallied 22 percent in last one month.

Dewan Housing Finance Corporation has reported a massive 52.55 percent year-on-year growth in second quarter profit to Rs 438.7 crore despite sharp rise in provisions and liquidity crisis. The stock gained 4 percent higher.

Bank of America has maintained its buy call on Jubilant FoodWorks with a target of Rs 1,600. This implies a potential upside of 32 percent from the last traded price. The stock ended a percent higher.

Shares of Jet Airways rallied over 2.5 percent higher after a media report indicated that promoter is in talks with foreign partner for financial support.

Global Markets

European stocks were higher as investors looked to shrug off negative global market moves. Stoxx 600 was up around 0.3 percent.

Meanwhile, markets in Asia were mixed amid weak handover from Wall Street. Hong Kong's Hang Seng index rose 0.23 percent in afternoon trade. The Shanghai composite rose 0.21 percent to close at around 2,651.51. The Shenzhen composite added 0.544 percent to end its trading day at about 1,386.43.