Nifty too ended in the red zone on Wednesday, hitting a low of 10844.30 before settling at 10858.25, down 150.05 points, or 1.36%
Stock market investors were caught in a rupee-crude spiral on Wednesday as Sensex slipped below 36000 and the broader Nifty below 11000 mark.
Heavy selling in rupee and oil dependent IT and auto stocks saw Sensex dropping 550.51 points, or 1.51%, to close at 35975.63, its biggest single-day fall in seven months.
During the intra-day trade, the 30-share barometer hit a low of 35911.82. The gauge had gained 299 points on Monday after the Reserve Bank of India had announced measures to shore up liquidity.
Nifty too ended in the red zone on Wednesday, hitting a low of 10844.30 before settling at 10858.25, down 150.05 points, or 1.36%.
“Market dragged down as the rupee hit a new low due to increase in oil prices and concern over the balance of payment. Despite the government’s plan to cut borrowing in H2FY19, yields continued to increase due to rate hike expectations from RBI. Sentiment for equity has turned tepid, given heightened volatility in the domestic and global financial markets,” said Vinod Nair, head of research at Geojit Financial Services.
The market capitalisation of the BSE-listed firms plunged Rs 1.71 lakh crore to Rs 143 lakh crore.
However, the broader market showed a mixed trend as the BSE Midcap index lost 1.11% and Smallcap index advanced 0.20%.
“With the rupee and crude oil showing no signs of stability, we expect the weakness to continue in the coming sessions. The RBI monetary policy will provide further direction to the markets,” Jayant Mangalik, president, Religare Broking, said.
Among sectors, 14 out of 19 sub-sectoral BSE ended in red. BSE Auto lost the most 2.90% followed by Telecom (2.84%), Teck (2.38%), Information Technology (2.23%) and Consumer Discretionary Good and Services (2.06%). Mahindra & Mahindra, Tata Consultancy Services, Axis Bank, ICICI Bank and Maruti Suzuki were the biggest losers in the Sensex pack, falling as much as 6.66%.
Meanwhile, as per the provisional data, the foreign institutional investors sold shares worth Rs 1,550.04 crore on Wednesday, while the domestic institutional investors bought shares worth Rs 1,402.47 crore on a net basis.
Globally, a mixed trend at other Asian and European markets on weak global cues accelerated selling. Asian stocks ended mixed with Hong Kong’s Hang Seng falling 0.13%, while Japan’s Nikkei shed 0.66%. In the Eurozone, Paris CAC rose 0.44%, but Frankfurt’s DAX was down 0.42%. London’s FTSE up 0.38%.
6.66%
lost by Mahindra & Mahindra, which was the biggest losing stock on Sensex
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