Sensex dives 488 points to 37,789, Nifty settles below 11,360

Equity benchmark indices nosedived on Wednesday, led by selling pressure in heavyweight stocks like Reliance Industries, Vedanta and State Bank of India.

The S & P BSE Sensex shed 488 points to close at 37,789 while the Nifty 50 was down 138 points to 11,359. Traders said subdued corporate results and caution ahead of the general elections outcome also weighed on indices.

All sectoral indices were in the red at National Stock Exchange. Nifty Media was down 4.5 per cent while Nifty Realty slipped 2.1 per cent.

Among stocks, Zee Entertainment fell 9.7 per cent after reports said that Essel Group's stake sale process in the company is at an advanced stage.

Reliance Industries was down 3.35 per cent while oil prices rose as US sanctions on crude exporters Iran and Venezuela left markets tight.

Vedanta dropped 2.5 per cent, a day after reporting a substantial dip in profit during the fourth quarter of fiscal 2018-19.

State Bank of India was down 2.5 per cent, ONGC 1.7 per cent and Bajaj Auto 1.6 per cent.

Among the winners were JSW Steel, Power Grid, Indian Oil, Adani Ports and Coal India.

Meanwhile, Asian stocks dropped as the US threat of higher tariffs on imports from China continued to reverberate through markets. Washington has accused Beijing of backtracking from commitments made during trade negotiations in recent weeks.

US President Donald Trump said on Sunday that he will raise tariffs on 200 billion dollars worth of Chinese goods to 25 per cent from 10 per cent.

On Tuesday, Beijing said that Chinese Vice Premier Liu He will visit Washington on Thursday and Friday for trade talks in a bid to salvage the deal.