Indian stock market ended lower on Wednesday following the negative sentiments over trade deficit that widened to an almost three-year high. BSE Sensex plunged 181.43 points or 0.55% to end at an over three-week low of 32,760.44 while NSE Nifty lost 68.55 points or 0.67% to finish at 10,118.05. Investors seemed to have disappointed in the lower-than-expected second-quarter corporate earnings while concerns of foreign portfolio investors’ exit from equities continued to weigh. The Sensex opened higher at 32,944.94, but soon turned negative before settling at 32,760.44, it had lost 372.69 points in the previous two sessions.
Shares of ONGC, Airtel, NTPC, Lupin, ITC, Tata Motors, Bajaj Auto lost up to 2.55% while Asian Paints, Kotak Mahindra Bank, Hero MotoCorp, and ICICI Bank gained up to 1.96%. A slump in shares of ITC, Sun Pharma, HDFC, SBI, ONGC, RIL led the indices into losses.
Most shares of the Reliance ADAG tumbled sharply amid heavy trading volumes on Wednesday in the late afternoon trade, with the Anil Ambani group’s Reliance Communications shares falling to single digits for the first time ever. The other group stocks include which fell include Reliance Power, Reliance Infrastructure, Reliance Naval and Engineering, Reliance Capital and Reliance Nippon Life Asset Management. The telecom arm of ADAG, Reliance Communications is reeling under the immense burden of debt. Shares of Reliance Communications fell about 17.24% to hit an all-new record low of Rs 9.6 and finally settled at Rs 10.3.
The stocks of Reliance Infrastructure slipped 15% at the day’s low and finally closed at Rs 418.95; Reliance Capital shed 15% intraday before closing at Rs 422; Reliance Naval and Engineering dropped 11.22% at the day’s low and ended at Rs 44, while Reliance Nippon Life Asset Management tripped 9.23% intraday before recovering a little to end at Rs 256.5.
The broader Nifty fell sharply by 68.55 points or 0.67% to settle at 10,118.05. Intra-day, it hovered in the range of 10,175.45 and 10,094. Shares of Sun Pharma ended 4% lower after the company reported a 59.19% decline in consolidated net profit for the September quarter of the current fiscal. The stock slipped 4.76% to Rs 501.14 before closing 4.01% lower at Rs 505.05 on BSE. The company’s market capitalisation dropped by Rs 5,064.97 crore to Rs 1,21,174.03 crore. In terms of volume, about 96 lakh shares were traded on BSE and NSE during the day.
Sensex and Nifty extended losses on Wednesday led by a number of factors including higher inflation data, mixed sentiments over the ongoing second-quarter corporate earnings, foreign portfolio investors’ exit from equities and profit booking. The trade deficit widened to almost a 3-year high of USD 14 billion last month as imports surged.
Meanwhile, in the regional markets, Tokyo’s Nikkei 225 index tumbled 1.6% to 22,028.32, as manufacturers’ shares were stung by a stronger yen. Hong Kong’s Hang Seng lost 1% to 28,851.69 and the Shanghai Composite index lost 0.8% to 3,402.52. Australia’s S&P ASX 200 fell 0.6% to 5,934.20 and the Kospi of South Korea declined 0.3% to 2,518.25, Associated Press reported.