Mumbai Nov 8 (IANS) Heavy selling pressure in metals automobile and banking stocks coupled with negative global cues and outflow of foreign funds suppressed the key Indian equity indices on Wednesday.
Market observers opined that geo-political tensions in the Middle East along with selling pressure in index heavyweights like Bharti Airtel Tata Motors State Bank of India (SBI) and Lupin among others aided in the losses suffered by the indices.
The wider Nifty50 of the National Stock Exchange (NSE) fell by 47 points or 0.45 per cent to close the day s trade at 10 303.15 points.
The 30-scrip S&P BSE Sensex closed at 33 218 81 points -- down 151.95 points or 0.46 per cent from Tuesday s close.
The BSE market breadth was bearish -- 1 805 declines and 949 advances.
"Markets moved down further on Wednesday after the sharp sell-off seen yesterday (Tuesday). Selling in metals auto banks and telecom shares dragged down the indices " Deepak Jasani Head - Retail Research HDFC Securities told IANS.
"Major Asian markets ended on a mixed note. European indices like FTSE 100 DAX and CAC 40 traded lower " Jasani added.
In terms of the broader markets the BSE mid-cap closed lower by 0.77 per cent and the small-cap index lost 0.96 per cent.
According to Dhruv Desai Director and Chief Operating Officer of Tradebulls shares of some household appliances companies rallied by up to 13 per cent on the BSE in the otherwise range-bound market after reporting strong set of numbers in the September quarter.
"Crude oil prices slipped on Wednesday but hovered near two-and-a-half year highs hit earlier this week potentially stalling a record-setting share rally on concerns that India s central bank would hold off on cutting interest rates " Desai told IANS.
"Except IT (up 0.32 per cent) all the sectoral indices traded in the negative territory led by metal which fell 1.84 per cent followed by energy 1.65 per cent telecom 1.62 per cent and basic materials 1.44 per cent " he added.
Sector-wise the S&P BSE metals index declined by 228.92 points followed by oil and gas index by 212.62 points and consumer durables index by 174.54 points.
On the other hand the S&P BSE IT index rose by 41.50 points and Teck (technology media and entertainment) index by 5.56 points.
Vinod Nair Head of Research Geojit Financial Services said: "Market showed signs of consolidation as investors took one step back from riskier assets due to rising oil price and the resultant impact on inflation and deficit.
"We don t expect the current liquidity to drain as rupee is more or less steady and the prevailing earnings season is providing positive vibe to the H2FY18E estimates."
"Additionally FIIs (foreign institutional investors) are gradually turning positive to domestic market due to supportive government reforms."
On the currency front the rupee strengthened by 7-8 paise to close at 64.95-96 against the US dollar from its previous close at 65.03.
Provisional data with the exchanges showed that on Tuesday FIIs invested in scrips worth Rs 461.47 crore.
However on Wednesday FIIs turned net sellers and sold scrips worth Rs 3 838.27 crore. On the contrary domestic institutional investors bought stocks worth Rs 3 038.16 crore.
Major Sensex gainers on Wednesday were: Axis Bank up 3.41 per cent at Rs 545.05; Asian Paints up 2.51 per cent at Rs 1 170.95; Cipla up 2.07 per cent at Rs 620.95; Sun Pharma up 1.89 per cent at Rs 537.80; and Bajaj Auto up 0.97 per cent at Rs 3 194.
Major Sensex losers were: Bharti Airtel down 3.73 per cent at Rs 495.15; Tata Motors down 2.92 per cent at Rs 438.70; SBI down 2.35 per cent at Rs 309.75; Lupin down 2.09 per cent at Rs 842.55; and ICICI Bank down 2.05 per cent at Rs 305.80.
--IANS
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