After a marvelous Monday, the main Indian stock indices were unable to capitalize on the momentum, as market participants preferred to book profit ahead of IIP data and important results from IT titans, Infosys and TCS on Thursday. Overnight losses in the US markets and weakness in the Asian indices dragged the Sensex and Nifty at opening bell. Markets remained under pressure throughout the day, with the sentiment getting further hit after a weak start to the European markets.
The Sensex ended at 17,489, down 129 points or 0.7% from the last close. It had earlier touched a day’s high of 17,582 and a day’s low of 17,466. It opened at 17,553.
The NSE Nifty settled at 5306, down 39 points or 0.7%. It touched a day’s low of 5,300 and day’s high of 5,336.
Hindalco, Reliance Infra, Tata Motors, Wipro, Siemens, DLF, Sterlite, Reliance Industries and Bharti Airtel were the notable losers on the Sensex and the Nifty today.
L&T, Kotak Bank, BPCL, Power Grid and Bank of Baroda were among the gainers on the Nifty.
Barring the Capital Goods index, all the other BSE sectoral indices ended in the red. The BSE Auto index led the decline, followed by FMCG, Realty, Metals and Oil & Gas indices.
The INDIA VIX on NSE gained by 3.1% to close at 18.39. It hit day’s high of 18.57. It hit a low of 17.80.
The market breadth on the BSE was negative, 1617 stocks declined and 1211 stocks advanced.
Asian stock indices finished mostly lower on worries that a worldwide economic downturn will crimp corporate earnings amid apprehensions about the eurozone leaders' ability to decisively contain the long-running debt crisis.
The Chinese market remains in focus on growing expectations of further stimulus from the policymakers. Chinese Premier Wen Jiabao said on Tuesday that the government’s top priority was now stabilizing economic growth rather than long-term restructuring.
The Shanghai Composite index managed to bounce back, ending higher by 0.5%. Stock indices in Japan, South Korea, Australia and Hong Kong all closed slightly lower.
European stock markets opened lower on Wednesday on the back of weakness in the US and Asian markets. The Stoxx Europe 600 index was flat. The benchmarks in France, Italy and the UK declined marginally while those in Germany gained slightly.
Spanish stocks surged after Prime Minister Mariano Rajoy on Wednesday announced €65 billion ($79 billion) of new austerity measures to meet new deficit-reduction targets set by the eurozone finance ministers in exchange for a bailout for its ailing banks..
Markets in the US closed in the red on Tuesday amid growing concerns about slowdown in corporate earnings. Sentiment on Wall Street was marred by downgrade of revenue forecast by leading companies such as engine maker Cummins and chipmaker AMD.
STOCKS IN THE NEWS:
Shares of Multi Commodity Exchange of India and Financial Technologies (India) rose after capital market regulator SEBI allowed MCX Stock Exchange to launch trading platforms on other asset classes, including equity.
Jaypee Infratech rose on speculation that its 165-kilometre Yamuna Expressway, connecting Noida and Agra, was likely to be thrown open for public use on 17th July.
TVS Motor Company shares climbed, extending this week’s advance, triggered by media reports that the company is in talks with BMW's motorcycle division for a technology tie up.
BPCL advanced ahead of record date for 1:1 bonus issue.
Cummins India fell after US-based parent Cummins Inc. cut its full-year sales forecast on Tuesday.
Traded volumes jumped at Infotech Enterprises counter. Den Networks, Andhra Pradesh Paper Mills, Castrol India and MCX were among the other stocks that saw a spurt in volumes on BSE today.
Select fertiliser shares rose on reports that the southwest monsoon had covered almost the entire country.
Castrol India shares surged after the company said its Board of Directors will consider proposal for a bonus share issue on 16th July.
Strides Arcolab rose after the company said its injectable drug division has formed a joint venture with a Canadian generic drug firm to introduce a variety of quality injectable generic drugs in Canada.