The weakness of the Asian markets reflected in the Indian market. Chinese benchmark index lost nearly 6.50% or 283.81 points over the governments decision to raise its duty on stock trading.
Market participants are concerned that Chinese equities, which have hit record highs, could further see a steep sell-off, hurting markets around the world. The other top losers were Hang Seng that dipped by 0.86% or 175.83 points followed by Nikkeis slide of 0.48% or 84.30 points.
At the BSE, the Mid-Cap index was down by 1.01% or 62.90 points at 6,191.61 points and the Small-Cap index declined by 0.52% or 38.77 points at 7, 349.56 points.
However, Kashmira Mehta, an institutional dealer with CD Equisearch, believes that the fall in Indian markets was mainly due to the weakness in European and US markets. In the Chinese markets, rising of duty on stock trading was their internal problem and it did not effect the Indian markets in a major way. Even in the coming days, there will not be much downward swing in the Indian markets. However, if Bank of Japan considers further tightening of interest rates then it could act as a trigger.
Meanwhile, on Wednesday, the market breadth looked weak as 60.11% stocks (1594) declined as against the advances of 37.37% stocks (991).
The top gainers of the day were L&T, up 7.39% or Rs.137.15. It struck a fresh, all time high of Rs 2009, in intra-day trade.
It reported a 50% rise in net profit to Rs 701 crore in Q4 March 2007 from Rs 467 crore in Q4 March 2006. Some of the other top gainers were Hero Honda, up 1.70% or Rs.11.65, HDFC, up 1.08% or Rs.19.55.
On the other hand, the top losers were Reliance Communications, down 3.79% or Rs.19.75, Reliance Energy, down 3.71% or Rs.20.60, HDFC Bank, down 3.56% or Rs.40.75 and IT major Infosys lost 2.42% or Rs.47.30.