Nifty slips 91 points ahead of February F&O expiry, Rail Budget

The S&P BSE Sensex ended down 321 points at 23,089 and the Nifty50 ended down 91 points at 7,019.

Benchmark share indices ended over 1% lower on Wednesday tracking fall in global stocks after crude oil prices eased while traders turned cautious ahead of the expiry of February derivative contracts and the railway budget tomorrow.

The S&P BSE Sensex ended down 321 points at 23,089 and the Nifty50 ended down 91 points at 7,019. In the broader market, the BSE Midcap and Smallcap indices also ended down 0.9%-1.1% each. Market breadth ended negative with 1733 losers and 735 gainers on the BSE.

"After breach of important trading support once again in yesterdays trading session, the Nifty continued its downtrend and moved towards 7000 by end of the days trading clearly signifying that the approach to the Budget day event is likely to be poor and can lead to further cuts in the coming sessions," said Siddhartha Khemka, Head – Research, Centrum Wealth in a note.

Read more from our special coverage on "NIFTY"

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"The next important support for the Nifty is at 6925 and 6870 the latter being the near 52 week low for the index. Resistance in case of a pullback, is now likely to be strong near 7090 while 7200-7250 is a strong supply zone as well for the Nifty,"" he adds.

GLOBAL MARKETS

Globally, most Asian markets ended lower with Straits Times down 2% while Hang Seng eased 1.2% and Nikkei ended down 0.9%. However, China's Shanghai Composite bucked the weak trend to end 0.9% higher.

European shares edged lower weighed down by commodity stocks after base metal prices eased while energy shares weakened tracking fall in crude oil prices. Among the major indices FTSE, CAC-40 and DAX were trading 1.2%-1.6% lower.

"Markets continued to remain weak tracking losses in global markets amid falling crude oil prices. Meanwhile, the disruptions in the parliament also weighed on sentiment. Markets are likely to witness further selling pressure and remain volatile ahead of the expiry of February derivative contracts tomorrow," says Alex Mathews, Head of Research, Geojit BNP Paribas Financial Services.

BANKS, FMCG STOCKS SLIDE

In the Sensex pack,  ITC, Housing Development Finance Corporation (HDFC), Cipla, ICICI Bank and Bharat Heavy Electricals Limited (BHEL) hit their respective 52-week lows on the BSE in intra-day trade today. ITC ended over 2.5% lower on worries of excise duty hike on cigarettes in the forthcoming Budget.

Private banks ended lower tracking losses of their respective American Depository Receipts. HDFC Bank eased 1.9% while ICICI Bank ended down 2.5%.

Punjab National Bank ended down 0.7% at Rs 72.20. The state-owned banking major declared a list of 904 wilful defaulters that owe close to Rs 11,000 crore to the bank.

Tata Motors slipped over 3% on reports that around 400 workers at the site went on a flash strike on Tuesday demanding re-instatement of 28 suspended workers.

Oil explorers ONGC and Cairn India ended over 2.4% lower after global crude oil prices fell as Saudi Arabia said that there would be no reduction in production by major oil producers.

Meanwhile, oil refiners such as Reliance Industries and oil marketing companies such as BPCL, HPCL and IOC ended up 0.4%-4% each.

Metal shares witnessed selling pressure after global metal prices eased and weak industrial demand. Hindalco, Tata Steel, JSW Steel ended down 1.5%-2% each.

Bharti Airtel ended nearly 1% higher. Private sector lender Kotak Mahindra Bank has acquired 19.9 per cent stake in its wholly-owned subsidiaryAirtel M Commerce, for Rs 98.38 crore. Airtel M Commerce, a wholly-owned subsidiary of Bharti Airtel, had won an in-principle licence from the Reserve Bank of India for setting a payments banks.

NTPC ended down nearly 4% at Rs 119 which is below its base price of Rs 122 set by the government for the 5% stake sale.

Among other shares, Punj Lloyd ended up nearly 2%, in an otherwise weak market, after the company announced that it has secured a Rs 308 crore infrastructure order in Dubai, United Arab Emirates. The contract has been awarded to Punj Lloyd by Front Line Investment Management Co. LLC, subsidiary of Damac Properties Development LLC.

NMDC ended down 13% after the stock was quoted ex-dividend. The company had announced a dividend of Rs 9.50 per share.