Snapping its three-day winning streak, the domestic equity market slipped into the negative territory on Wednesday amid heavy selling in auto and financial stocks. The S&P BSE Sensex
lost 383 points or 1 per cent to settle at 34,780 with YES Bank being the top loser (down nearly 7 per cent) and ITC (up over 1 per cent) the top gainer. The broader NSE's Nifty50 index lost 132 points or 1.24 per cent to end at 10,453.
Bank stocks came under pressure on the back of weekly expiry. The Nifty
Bank Index fell 401 points or 2 per cent to settle at 25,189. Auto stocks too tumbled during the session with the Nifty
Auto index ending 3 per cent lower at 8,835.
Shares of non-banking financial companies (NBFCs), mainly housing finance companies (HFCs) were under pressure with Repco Home Finance, Dewan Housing Finance Corporation (DHFL), Indiabulls Housing Finance and Edelweiss Financial Services plunging up to 13% on the BSE.
Among individual stocks, Reliance Industries (RIL) ended over 1 per cent lower at Rs 1,149 ahead of its Q2 results, due later in the day. In a Bloomberg poll, seven analysts expect RIL
to report consolidated revenue of Rs 1.40 trillion and 10 analysts expect RIL’s net income to be Rs 96.29 billion. In the corresponding quarter last year, RIL
reported a net profit of Rs 81.09 billion. Analysts expect the petrochemicals business to drive most of this profitability.
On the other hand, shares of NIIT Technologies rose 6% to Rs 1,199 on the BSE after the company reported a strong 29% sequential growth in its consolidated net profit at Rs 1,167 million in September quarter (Q2FY19). The information technology company had reported a profit of Rs 904 million in the same quarter last fiscal.
Forecast-beating US company earnings improved the mood on world equity markets
on Wednesday, as Asian and European shares put aside concerns on global growth and trade and took their cue from Wall Street’s best one-day rise in eight months. A pan-European equity index rose 0.15 per cent to a one-week high. Earlier, MSCI’s ex-Japan share index added 0.6 per cent while Japan’s Nikkei jumped 1.3 per cent. MSCI’s global equity index touched a one-week high. The 47-country benchmark rose a quarter per cent after enjoying its biggest one-day gain since mid-2016 on Tuesday, with a rise of 1.7 per cent.
(with Reuters input)