Sensex skids for third day, bank stocks fall; Bharti Airtel jumps over 5%


Equity benchmarks nursed losses for the third session on the trot on Wednesday, weighed by banking, energy and auto stocks amid a lacklustre trend overseas.

Global stayed on the backfoot amid a continuing sell-off in Chinese shares, while investors also remained on the sidelines ahead of the US Federal Reserve’s policy decision.

After plummeting over 700 points in intra-day trade, the 30-share clawed back some lost ground to end 135.05 points or 0.26 per cent lower at 52,443.71.

Similarly, the broader NSE Nifty slipped 37.05 points or 0.24 per cent to close at 15,709.40.

Kotak Bank was the top laggard in the Sensex pack, shedding 2.64 per cent, followed by Dr Reddy’s, M&M, PowerGrid, NTPC, HDFC Bank and Nestle India.

On the other hand, topped the gainers’ chart with a jump of 5.08 per cent after the telecom player hiked its prepaid tariffs, just a week after upgrading its postpaid plans.

Tata Steel, IndusInd Bank, Bajaj Finserv, ICICI Bank and UltraTech Cement were among the other winners, climbing up to 2.60 per cent.

‚ÄúDomestic equities extended losses as weak cues from global triggered by selling pressure in Chinese tech stocks due to regulatory overhang weighed on sentiments,” said Binod Modi, Head Strategy at Reliance Securities.

Further, persistent selling pressure in financials led by concerns over asset quality dragged the benchmark index. However, positive cues from European and buy on dips helped market to recover from the day’s low in the second half, he added.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Jitters over Chinese clampdown and wariness over ongoing Fed meeting outcome, continue to disturb the domestic market. However, as the global markets gained ground after the recent sell-off, losses were trimmed by the end of the day.” “Due to a weak start to the sector earnings, pharma stocks continued to trade in bear’s grip while banking, auto and realty stocks were feeble too. Globally, the Fed’s comment on economic recovery, inflation and monetary policy may provide hints about tapering, which will determine the mood of the market in the near future,” he added.

Sectorally, BSE auto, bankex, utilities, realty, consumer durables and energy indices slipped up to 1.01 per cent, while telecom, metal, teck, basic materials and capital goods indices ended with gains.

Broader BSE midcap index ended flat, while the smallcap gauge fell 0.45 per cent.

Elsewhere in Asia, bourses in Shanghai and Tokyo ended with losses, while Hong Kong and Seoul closed in the green.

Equities in Europe were trading on a positive note in afternoon trade.

Meanwhile, international oil benchmark Brent crude advanced 0.76 per cent to USD 74.08 per barrel.

The rupee recovered by 9 paise to close at 74.38 against the US dollar on Wednesday, snapping it two-day losing run ahead of the US Fed policy decision.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link


Please enter your comment!
Please enter your name here