Markets stumble on profit-booking, geopolitical concerns; bank, auto stocks tank

The BSE Sensex plummeted 504 points on Wednesday as investors booked profit following the benchmark's recent record-shattering run, while global equities took a knock over geopolitical uncertainties and growth concerns.

After sinking 586 points during the day, the 30-share Sensex ended 503.62 points, or 1.29 per cent, lower at 38,593.52. The broader NSE Nifty plunged 148 points, or 1.28 per cent, to 11,440.20.

Global markets wobbled after top US Democrat Nancy Pelosi announced opening of a formal impeachment inquiry into President Donald Trump.

This has ratcheted up political uncertainties at a time when equities are already bearing the brunt of Middle East tensions and weak global growth signals, analysts said.

Further, Trump put China on notice at the United Nations, declaring that the time of trade "abuses" by Beijing was "over" and calling on the country to protect Hong Kong's "democratic ways of life".

On the domestic front, investors were eager to book profit after the recent rally, leading to heavy selling pressure in bank, finance and auto counters, traders said.

Moreover, ADB sharply cut India's growth forecast to 6.5 per cent for 2019-20 from 7.2 per cent estimated earlier, though it indicated that the country would grow faster than China.

Top laggards in the Sensex pack were SBI, Tata Motors, Maruti, Yes Bank, M&M, HDFC twins, ITC, Vedanta, Hero MotoCorp, Tata Steel and L&T, losing up to 7.37 per cent.

On the other hand, PowerGrid, TCS, NTPC, HCL Tech, Tech Mahindra and RIL rallied up to 4.39 per cent.

"Political uproar in US to impeach President Trump led to sell-off in global market seems a short-term reaction, while fresh NPA issues, weak September auto sales and monthly expiry prompted investors to book profit post the sharp upside since the last Friday.

"Bond yields are inching higher anticipating fiscal tightness, while government is planning higher divestment to ease the situation," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE auto, realty, metal, capital goods, bankex, finance, industrials and telecom indices declined up to 3.84 per cent.

However, power, utilities, IT and teck spurted up to 1.05 per cent higher.

Broader BSE midcap and smallcap indices cracked up to 1.76 per cent.

Elsewhere in Asia, Hang Seng, Shanghai Composite Index, Nikkei and Kospi ended significantly lower.

Stock exchanges in Europe were also trading nearly 1 per cent down in their respective early sessions.

On the currency front, the rupee depreciated 9 paise to 71.10 against the US dollar (intra-day).

Brent crude futures fell 1.65 per cent to USD 62.06 per barrel.