Subdued global cues disturbed the party on Dalal Street as benchmark indices BSE Sensex and NSE Nifty snapped their three-day gaining streak on Wednesday. Market sentiments also affected as Nikkei India Services Business Activity Index eased to 52 in September from 54.7 in August, pointing to a slower and moderate rate of expansion. The 30-share index closed 113.57 points, or 0.40 per cent, down at 28220.98, while the Nifty 50 index settled 25.20 points down at 8,743.95.
Among the 51-components in Nifty index, 33 stocks ended the in red with ONGC falling the most — 2.36 per cent, followed by Axis Bank (down 2.31 per cent), Idea Cellular (down 1.54 per cent), Mahindra & Mahindra (down 1.44 per cent) and Bajaj Auto (down 1.44 per cent). On the other hand, Tata Motors DVR, BPCL, Ultratech Cement, Hindalco and Bharti Infratel gained 2.51 per cent, 2.08 per cent, 1.94 per cent, 1.75 per cent and 1.60 per cent, respectively.
Sectorwise, the BSE Bankex, IT, TECk, Healthcare and Oil & Gas slipped by 0.78 per cent, 0.56 per cent, 0.38 per cent, 0.34 per cent and 0.33 per cent. The BSE Realty index, Metal, Telecom and Auto advanced 1.69 per cent, 0.69 per cent, 0.45 per cent and 0.35 per cent, respectively.
Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund said, “Domestic equity markets closed in red as a slew of conflicting news flows kept investors on their toes. Overseas stock markets traded lower as investors digested data from the International Monetary Fund (IMF) and remarks from a Federal Reserve official who said that the central bank should pre-emptively raise short-term interest rates to stave off accelerating inflation.”
Metal stock gained after the government decided to extend the Minimum Import Price (MIP) regime on 66 steel product by another two months till 4 December. The 66 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.
Asian peers ended mostly in red on Wednesday, as hawkish comments from Federal Reserve officials and speculation that the European Central Bank may start unwinding its quantitative easing program offset gains by energy companies. Hang Seng and Nikkei closed 0.42 per cent and 0.50 per cent higher at 23788.31 and 16,819.24, while Jakarta Composite, Kospi Composite and Taiwan Weighted slipped by 0.94 per cent, 0.09 per cent and 0.17 per cent, respectively, on Wednesday.
European equity markets were also trading lower. Germany’s DAX was down 71.4 points at 10,548.21, UK’s FTSE 100 shed 34.45 points at 7,039.89 and France’s CAC was down by 31.42 points at 4,471.67.