Sensex dips 184 points, Nifty ends below 8,800; Tata Motors tanks 10%

Broader markets underperformed the headline indices with BSE Midcap and BSE Smallcap losing over 1%

The market on Wednesday extended losses for the third straight day even while global markets rallied, as heavy losses in Tata Motors and Sun Pharma weighed on the benchmark indices. 

The S&P BSE Sensex ended at 28,155, down 184 points, while the broader Nifty50 quoted 8,724, down 68 points at close. 

Broader markets underperformed the headline indices, with BSE Midcap and BSE Smallcap losing 1.2% and 1.5%, respectively. 

Market breadth remained weak. There were more than three losers for every gainer on the BSE. As many as 2,143 shares fell, while 698 shares rose. A total of 143 shares were unchanged.

"Market witnessed correction due to the disappointing quarter results from some blue chips and the Fed’s testimony on a rate hike in March. A cap in the revival of earnings growth in the broad domestic market and today’s US CPI data can provide more clues to the current consolidative trend," said Vinod Nair, Head of Research, Geojit Financial Services.

Buzzing stocks

Tata Motors fell 10% to Rs 436 after the automaker on Tuesday reported a worse-than-expected 96% fall in December-quarter profit, citing sharply lower earnings at Jaguar Land Rover (JLR) and losses in its domestic business.

Sun Pharmaceutical fell 4% to Rs 623 after reporting its first fall in quarterly profits in a year on Tuesday, as pricing issues and supply constraints affected sales in the US -- its largest market.

The demonetisation move has hit quarterly results of some companies such as DLF and SpiceJet, which reported a fall in December-quarter profit on Tuesday. Shares of DLF slipped 7% to Rs 137, while SpiceJet fell 6.6% to Rs 60.

Shares of Parag Milk Foods tanked 20% to hit its lower circuit of Rs 212 after the company reported a consolidated net loss of Rs 38 crore for the quarter ended December 2016 (Q3FY17), due to higher expenses. The company engaged in dairy product business had profit of Rs 14.50 crore in the year ago quarter.

Meanwhile, HDFC Bank, Gruh Finance, Indraprastha Gas (IGL), SJVN, L&T Finance Holdings, AIA Engineering and Alkem Laboratories from the BSE500 index hit their respective all-time highs in intra-day trade in an otherwise weak market.

Global markets

World stocks hit 21-month peaks on Wednesday and the dollar rose for the 11th straight day, after Federal Reserve Chair Janet Yellen flagged a possible interest rate rise next month during upbeat comments on the US economy.

Propelled by record highs on Wall Street, MSCI's benchmark global equity index rose 0.25% to 442 points, its highest since May 2015 and two points off its record high. It has not fallen for six sessions, its longest such run since last July.

Europe's index of leading 300 stocks rose 0.4% to 1,465 points, its highest since December 2015. Germany's DAX and Britain's FTSE were both up 0.5%.