Sensex, Nifty end marginally lower after a day of volatile trade, bank stocks recover
The BSE Sensex ended 21.04 points or 0.06% lower at 33,835.74 on Wednesday. The broader NSE Nifty 50 too settled the day marginally lower, 0.15% or 15.95 points down.business Updated: Mar 14, 2018 17:28 IST
The benchmark BSE Sensex closed marginally lower by 21 points at 33,835.74, after a choppy trade due to selling in oil and gas, auto and metal stocks amid a global sell-off on heightened trade war fears.
Asian stocks declined following an overnight slide in US equities after President Donald Trump replaced his moderate Secretary of State Rex Tillerson with a hawk, CIA Director Mike Pompeo, who supports a hardline approach with China and Iran.
The BSE Sensex, after a gap down opening at 33,733.55, continued its slide to touch a low of 33,580.69 intra-day.
Later, it recovered to 33,875.15 on firming trend in Europe and a recovery in major banking stocks following a benign wholesale inflation data.
The index finally settled 21.04 points or 0.06% lower at 33,835.74. During the day, the barometer swung almost 295 points (both sides).
The broader NSE Nifty 50 cracked below the key 10,400-mark to touch a low of 10,336.30, before finally ending 15.95 points, or 0.15%, down at 10,410.90. Intra-day it touched a high of 10,420.35.
A fresh spell of selling dragged down most of the sectoral indices, led by oil & gas, realty, metal, FMCG, power, capital goods, auto and PSU which fell up to 0.94%.
“Markets traded in a range bound manner, due to mixed trend in global market, but recouped the losses as banking stocks outperformed due to improvement in financial market liquidity. Ease in February WPI inflation to 2.48% will further provide support to the market while any escalation in global risk may lead investors to stay cautious,” Vinod Nair, Head of Research, Geojit Financial Services Ltd said.
Inflation based on wholesale prices eased to a seven-month low of 2.48% in February on cheaper food articles, including vegetables, official data showed.
Banking stocks recovered from early lows to end in the green. Yes Bank rose 1.85% to emerge as the biggest gainer among Sensex scrips. Axis Bank, SBI and ICICI Bank also pared early losses to end higher by up to 0.89%.
Bank of Baroda, PNB, and HDFC Bank also rose up to 3.01%.
The RBI on Tuesday barred banks from issuing guarantees in the form of letters of undertaking (LoU) as it clamped down on the import financing route used by fugitive jeweller Nirav Modi and his uncle Mehul Choksi for allegedly committing India’s biggest bank fraud.
Gains in Maruti Suzuki, NTPC, Infosys, Adani Ports and L&T helped the index limit its losses.
However, oil major ONGC dropped by 1.53% after crude prices surged.
HeroMotoCorp took the biggest blow in the BSE Sensex kitty by sinking 1.78%, followed by Tata Steel 1.25%.
Other laggards included HDFC, Bajaj Auto, Bharti Airtel, Wipro, M&M, Coal India, Power Grids, Sun Pharma, ITC, TCS, Asian Paints, Kotak Bank and RIL, falling up to 0.91%.
Coal India fell 0.41% after brokerage firm Citi downgraded the stock to neutral and lowered its target price.
Gitanjali Gems cracked 4.90% to Rs 13.60 after National Stock Exchange (NSE) levied penalty on the company for failure to file financial results for quarter ending December.
Sector-wise, the BSE oil & gas index suffered the most by falling 0.94%, followed by realty (0.52%), metal (0.48%), FMCG (0.28%), power (0.17%), capital goods (0.10%), auto 0.09 and PSU 0.08%.
Bucking the trend, the broader markets ended in the green, with the mid-cap index rising 0.28% and small-cap up 0.28%.
Key indices in rest of Asia declined, with Japan’s Nikkei falling 0.87% and Hong Kong’s Hang Seng shed 0.53% while Shanghai Composite Index down 0.57%.
In the Eurozone, Paris CAC 40 rose 0.32% while Frankfurt’s DAX up 0.36% in early deals. London’s FTSE was higher 0.24%.
First Published: Mar 14, 2018 10:46 IST