Sensex off day's low, Nifty retains 8,900; Tata Steel top loser

Metal stocks were the biggest laggards with NMDC, Vedanta and JSPL shedding 3.5% - 4.7%

Benchmark indices pared some losses after Nifty snapped its 8,900 mark in the afternoon deals as markets remained cautious ahead of the exit polls data for assembly elections in five states and the US Federal Reserve policy meeting next week.

 

State elections results, including that of Uttar Pradesh, will have a key influence on Prime Minister Narendra Modi's chances of clinching a second term in 2019, is to be revealed on Saturday.

 

Meanwhile, the Federal Reserve has a policy meeting on March 14-15 and markets are expecting a rate hike after recent hawkish comments by policymakers.

 

At 1:28 pm, the S&P BSE Sensex was trading at 28,917, down 82 points, while the broader Nifty50 was ruling at 8,923, down 23 points.

 

In the broader market, the BSE Midcap and BSE Smallcap indices shed 0.5% and 0.3%, respectively. 

 

The market breadth was in the negative zone as 755 shares had advanced, 1,733 shares declined, while 135 shares are unchanged.

 

Tata Steel, Adani Ports, Axis Bank and ONGC dragged the index, while PowerGrid and Cipla gained a tad on BSE Sensex.

 

Metal stocks were the biggest laggards on BSE Sensex with NMDC, Vedanta and JSPL shedding 3.5% - 4.7%.

Kotak Mahindra Bank pared gains after rising as much 2.69% to a record high, following reports of stake sale to Canadian pension fund.  According to media reports, Uday Kotak is in discussions for a sale of over 3% stake in the bank to Caisse de Depot et Placement du Quebec (CPDQ).

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.

 

Wockhardt fell over 3% to Rs 711 in the early morning trade after the drug firm said the Health Products Regulatory Authority of Ireland has given nod to the renewal of certificate for its Aurangabad facility. The stock was currently trading 1% lower.

 

Meanwhile, Asian stocks erased early losses and edged higher on Wednesday as strong China trade data bolstered bets of a recovering global economy, though gains were capped by caution ahead of a widely expected US interest rate hike next week.

 

The China trade data pushed the MSCI's broadest index of Asia-Pacific shares outside Japan up by a quarter of a percent, putting it on track for a third consecutive day of gains. Mainland and Hong Kong stocks led gainers.