Sensex falls 150 points, Nifty tests 8,900; Tata Steel top loser

In the broader market, the BSE Smallcap index outperformed the frontline indices to rise 0.2%

The benchmark indices on Wednesday extended losses tracking weak global cues after Wall Street logged first consecutive sessions of declines in more than a month in anticipation that US Federal Reserve will hike interest rates next week. 

At 12:15 pm, the S&P BSE Sensex was trading at 28,847, down 152 points, while the broader Nifty50 was ruling at 8,901, down 45 points.

In the broader market, the BSE Midcap and BSE Smallcap indices shed 0.6% and 0.8%, respectively. 

"Volatility has been the theme lately, but that has stepped up enough to signal a reversal. Just that there has been indecisiveness written all over. This should play out for another day atleast, possibly, before an expansion in trading range evolves. Favoured view expects early dips to be held above 8,940 for a swing higher, but with limited upsides," said brokerage Geojit Financial Services. 

Buzzing stocks

Tata Steel was the top Sensex loser and slipped over 2% to Rs 472 after the company said it will close the British Steel Pension Scheme to future accrual from March 31 and employees will get a new contributory scheme for their retirement savings thereafter. 

Infosys continued to fall for the second straight day and dipped over 1% to Rs 1,007.  

Shares of Wockhardt fell over 3% to Rs 711 after the drug firm said the Health Products Regulatory Authority of Ireland has given nod to the renewal of certificate for its Aurangabad facility.

Avenue Supermarts IPO opens today

Avenue Supermarts' initial public offering (IPO) opens for subscription today. The price band for the IPO is Rs 295 to Rs 299 per share. On Tuesday the company raised Rs 561 crore from 35 anchor investors by allotting them 18.76 million shares at Rs 299 apiece. 

"Better RoE profile, promoter’s strong background, strategically located stores, intense focus on maintaining lower costs and strong brand perception are the compelling factors indicating that Avenue Supermarts is a long term story that will unfold going ahead. Thus, we recommend a SUBSCRIBE on this issue," said brokerage Angel Broking in the IPO note.

Gold steady near lowest in over four weeks

Gold prices were steady on Wednesday ahead of US payrolls data this week, but were not far from over four-week lows hit in the previous session on increased expectations of a US rate hike in March.

Spot gold was mostly unchanged at $1,216.1 per ounce. The yellow metal marked its lowest since February 3 at $1,213.6 an ounce in the previous session.

Global markets

Asian stocks edged lower on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1%. Japan's Nikkei was down 0.5%, Hong Kong's Hang Seng added 0.5%, while China's Shanghai Composite was hovering on the flat line. 

On Wall Street, the Dow Jones Industrial Average fell 29.58 points, or 0.1% to 20,924.76, the S&P 500 lost 6.92 points, or 0.3% to 2,368.39 and the Nasdaq Composite dropped 15.25 points, or 0.3% to 5,833.93.