The BSE Sensex and NSE Nifty closed 353.83 points and 108.55 points down at 27,512.26 and 8353.80, respectively on Wednesday as uncertainty over the fate of goods and services tax (GST) bill and global volatility following devaluation of the Chinese yuan weighed on blue chips.
In the 30-share Sensex pack, share price of Vedanta plunged the most —8.03 per cent to Rs 113.90, it was followed by Hindalco (down 7.21 per cent to Rs 95.90), Coal India (down 5.53 per cent to Rs 371.45), State Bank of India (down 4.77 per cent to Rs 256.45).
Among the sectoral indices on the Bombay Stock Exchange, the BSE Realty and BSE Metal index plunged 5.42 per cent and 4.32 per cent at 1347.43 and 7,918.87, respectively. On the other hand, the BSE IT index and the BSE Healthcare index gained 2.59 per cent and 0.49 per cent at 11,568.32 and 17,575.95, respectively.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “Domestic equity markets continued to feel the impact of the risks from the “Chinese yuan” devaluation. With fears over export competitiveness growing, sectors like metals and mining witnessed further correction. In the meantime, positive expectations on CPI and IIP numbers that are expected on Wednesday can provide an immediate support.”
The overall breadth stood negative as 691 stocks advanced while 2,148 stocks declined on the Bombay Stock Exchange.
Investors are keeping a close eye on retail inflation data that will be published later on Wednesday. Inflation likely cooled in July as food price rises stayed in check, while factory output grew slightly faster in June, a Reuters poll found this week.
Oil refiners stocks fell on worries gross refining margins and inventory gains will come off in the July-Sept quarter. Share price of Indian Oil Corp fell 7.26 per cent, Hindustan Petroleum Corp lost 7.56 per cent, while Bharat Petroleum Corp fell 5.97 per cent.
Gaurav Jain, director, Hem Securities, said, “Markets nosedived on global weakness which was caused on fears of further devaluation ofChina currency yuan. Further, it seems unlikely to pass GST bill in this monsoon session of Parliament which ends on Thursday. Rupee depreciation and passage of GST Bill hang dampened the sentiment.”
DLF, Symphony, Valecha Engineering, Balaji Tele, Asian Tiles, GIPCL, Paper Products, Kohinoor, PC Jeweller, Essar Ports, Eros Media, Cosmo Films, Jindal Poly, Jubilant Food, Atlas Cycle, Amrutanjan, Ajantha Pharma, La Opala, MMTC, Indian Oil Corporation, Triveni Turbine, Tata power, STC India, DCM, Rajesh Exports, ONGC, and Gujarat Apollo are some of the companies which may announce their earnings on August 13.
Asian peers, Nikkei 225, Hang Seng and Shanghai plunged 1.58 per cent, 2.38 per cent and 1.06 per cent, respectively on Wednesday.
Market performance through out the day
3.30 pm: The BSE Sensex and NSE Nifty closed 353.83 points and 108.55 points down at 27,512.26 and 8353.80, respectively on Wednesday.
3.10 pm: The BSE Sensex was down 352 points at 27,505.
3.05 pm: Investors said the passage of the goods and services tax bill might get delayed amid continued protests by the opposition with Thursday being the last day for the current session of the Indian parliament. The BSE Sensex was down 339 points at 27,526.
2.51 pm: The BSE Metal index was down over 4 per cent at 7,925 that contributed to markets fall. Share price of Vedanta and Hindalco was down 8.16 per cent and 6.92 per cent at Rs 113.75 and Rs 96.20, respectively.
“If China’s long-term policy is “competitive devaluation” then it is bad news for India,” said Ritesh Jain, chief investment officer at Tata Asset Management.
2.46 pm: Nestle India shares were down 1.79 per cent at Rs 6,191. The NSE Nifty and BSE Sensex were trading 1 per cent down at 27587 and 8,372.
2.30 pm: The BSE Sensex slid over 300 points at 27,543.
2.01 pm: The BSE IT index and BSE Consumer Durables index were up 2.91 per cent and 1.31 per cent at 11,604 and 11,410, respectively.
1.04 pm: The BSE Sensex was down 208 points at 27,658. Nifty was at 8,399.
12.47 pm: Sun Pharma (up 4.07 per cent), Tata Steel (3.04 per cent), Infosys (2.96 per cent), HCL (2.58 per cent) and TCS (2.26 per cent) were among the top gainers in the 50-share Nifty index. NSE Nifty was trading 55 points down at 8,407 at the same time.
11.50 am: Rajesh Exports shares were trading 7.06 per cent higher on earnings optimism. The company will announce its Q1 results on Thursday. BSE Sensex and NSE Nifty were down 72.43 points and 30.75 points at 27,793.66 and 8,431.60, respectively.
11.15 am: Shares of domestic oil refiners declined on worries that gross refining margins (GRM) and inventory gains will come off in June-September quarter. Shares of Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd were trading 4.82 per cent, 5.09 per cent and 6.61 per cent lower at Rs 398.10, Rs 878.65 and Rs 890, respectively.
10.50 am: The NSE volatility index, India VIX was up 4.26 per cent at 16.5700. CNX Nifty was trading 32.55 points down at 8,429. BSE Sensex was down over 100 points at 27,762.
10.40 am: Rupee slid to nearly a two-year low of 64.67 against the US dollar. Investors started scaling down their bets ahead of IIP and inflation data to be released later in the day amid weak global cues.
10.23 am: The BSE Sensex was down around 150 points at 27,717.
9.44 am: Shares of Sun Pharmaceuticals were up 2.64 per cent at Rs 864. The company announced its Q1 results on August 11 (post market hours). For the quarter ended June 2015, the company posted a consolidated net profit of Rs 478.96 crore, down 65.55 per cent, against Rs 1,390.51 crore in the corresponding quarter a year ago. According to market experts, Sun Pharma posted better-than-expected results in terms of sales and operating profit margin. The BSE Sensex was down 229 points at 27,637. The NSE Nifty were also trading 77 points down at 8,384.
9.24 am: The BSE Sensex and NSE Nifty were trading 104 points and 36.55 points down at 27,772.90 and 8,425.80, respectively.
Domestic equity markets fell sharply on Tuesday after China devalued its currency by nearly 2 per cent to boost its declining exports and concerns over the logjam in Parliament also rattled investors.