Sensex plunged 487.50 points, or 1.27%, to end Wednesday's session at 37,789.13, while NSE Nifty 50 slumped 138.45 points, or 1.2%, lower at 11359.4
The benchmark indices on Wednesday fell for a straight sixth session over uncertainty over the general election outcome, unsuccessful US-China trade negotiations and disappointing corporate earnings.
BSE Sensex plunged 487.50 points, or 1.27%, to end Wednesday's session at 37,789.13, while NSE Nifty 50 slumped 138.45 points, or 1.2%, lower at 11359.45. Intraday, Sensex touched a low of 37743.07 whereas Nifty touched a low of 11346.95 before recovering slightly. Since April 26, Sensex has lost a total of 1,277. 87 points while the broader Nifty fell 395.25 points.
"Since last week, corrections have started on uncertainty over the election outcome, unimpressive corporate earnings in the March quarter, followed by President Trump's tariff increase announcement on Sunday, resulted in subdued domestic market sentiments. With the fund flows turning negative, it triggered profit booking in the last few sessions," said an analyst.
Among the 11-sectoral indices on Nifty, all ended in the red. Nifty Media led the pack with a loss of 4.53%, followed by Realty (-2.11%), Pharma (-1.58%) and Auto (-1.34%).
According to Abhijeet Bajpai, co-founder, Avighna Trades, Wednesday's fall in the market was not surprising considering the negative news flow from the US-China trade talks and election results due in around 15 days.
"In the past couple of months, the markets have ignored the negative news and rallied unexpectedly, mainly due to higher FII inflows and liquidity. This downside move in the global market started with Trump's tweet about increasing tariffs and indication of a slowdown in the global economy. FIIs selling and slowdown indication in recent results will add to selling pressure in the coming days. Our markets will follow the global cues for the next couple of weeks until the election results are announced. In the absence of any positive triggers Nifty will try to breach 11000 and settle there," Bajpai said.
Of the 30-stock Sensex, HCL Technologies, Tata Consultancy Services and Asian Paints reported marginal gains. Major losers were Reliance Industries, Bajaj Finance, Tata Motors, State Bank of India, Vedanta, Bajaj Auto, which lost between 2.32% and 3.35%.
Sahaj Agrawal, head of derivatives, Kotak Securities, said the momentum failure at higher levels has had a significant impact on the broader markets.
"We believe this is a corrective phase in a rising market. On the downside, 11000-11100 is expected to be tested before we witness an aggressive recovery," Agrawal said.
Meanwhile, the US government has announced that tariffs on $200 billion in imports from China will be raised to 25% to 10% from Friday. However, just before the US stock markets opened, the White House Press Secretary Sarah Sanders said that China had informed the US administration that the country wants to "make a trade deal" with the US. This resulted in US stocks opening on a positive note, as optimism over a potential trade deal took hold of the US market.
SENSEX TAKES 487-POINT KNOCK
- Sensex plunged 487.50 points, or 1.27%, to end Wednesday's session at 37,789.13, while NSE Nifty 50 slumped 138.45 points, or 1.2%, lower at 11359.4
- Since April 26, Sensex has lost a total of 1,277. 87 points while the broader Nifty fell 395.25 points
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Among the 11-sectoral indices on Nifty, all ended in the red. Nifty Media led the pack with a loss of 4.53%, followed by Realty (-2.11%), Pharma (-1.58%) and Auto (-1.34%).
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