GST bill impasse dents markets; Sensex down 274 points (Roundup)

Dimmed prospects of key economic legislations getting the parliamentary nod in the winter session, coupled with a slowdown in the Chinese economy and falling commodity prices caused a barometer index to shed 274 points on Wednesday.

Initially, too, both bellwether indices of the Indian equity markets opened on a negative note following their Asian peers.

Moreover, domestic cues like the parliament logjam which has reduced the chances of the Goods and Services Tax (GST) bill getting passage during the winter session, eroded investors' confidence.

Should the bill not secure clearance in this session, it will miss its intended roll-out date of April 1 next year.

Foreign investors continued selling equities in the Indian markets ahead of a likely US rate hike -- further depressing investors -- while the domestic upcoming macro-economic data points, slated to be released on Friday, flared volatility.

In addition, oil and gas and energy companies' stocks stayed on their downward trajectory due to a dip in global crude oil prices.

Besides equities, the Indian rupee, too, remained under pressure. It closed weaker by one paise at 66.85 to a US dollar from its previous close of 66.84 to a greenback on Tuesday.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) shed 274 points or 1.08 percent during the day's trade.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed in the red. It closed lower by 89.20 points or 1.16 percent at 7,612.50 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,299.34 points, closed at 25,036.05 points -- down 274.28 points or 1.08 percent from the previous day's close at 25,310.33 points.

The Sensex touched a high of 25,316.95 points and a low of 25,012.22 points during the intra-day trade.

Market observers said the investors' sentiments were subdued due to the logjam in parliament and absence of fresh triggers.

"Markets continued on their downward trajectory. They were dragged lower by parliament's logjam, fall in global commodity prices and upcoming macro economic data which are slated to be released on Friday," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

"The negative news for the information technology (IT) industry coming from the US, where it has been proposed to cap the H1-B visas, adversely impacted investors risk taking appetite."

The foreign institutional investors (FIIs) were net sellers during the day's trade at the stock exchanges, whereas the domestic institutional investors (DIIs) were net buyers.

According to data with stock exchanges, FIIs sold stocks worth Rs.527.41 crore, while DIIs bought scrip worth Rs.864.71 crore.

Sector-wise, heavy selling was observed in automobile, metal, capital goods, banking and oil and gas sectors.

The S&P BSE automobile index plunged by 319.94 points, metal index receded by 214.85 points, capital goods index declined by 181.37 points, banking index dwindled by 163.58 points and oil and gas index was lower by 155.51 points.

Major Sensex gainers during Wednesday's trade were BHEL, up 2.61 percent at Rs.168.95; Tata Consultancy Services (TCS), up 1.55 percent at Rs.2,365.70; ITC, up 0.71 percent at Rs.317.45; ONGC, up 0.49 percent at Rs.217.15; and NTPC, up 0.12 percent at Rs.130.20.

The major Sensex losers were Vedanta, down 5.57 percent at Rs.82.25; Tata Steel, down 3.37 percent at Rs.226.85; Coal India, down 3.24 percent at Rs.307.65; Cipla, down 2.93 percent at Rs.623.40; and Bajaj Auto, down 2.92 percent at Rs.2,390.45.