S&P BSE Sensex was trading 300 points or 0.74 per cent lower at 39.981, while the broader Nifty 50 index was ruling at 11,706, down 92 points or 0.78 per cent
Extending losses from last two sessions, domestic equity market benchmarks Sensex and Nifty made a weak start on Wednesday with Nifty testing 11,700 level. S&P BSE Sensex was trading 300 points or 0.74 per cent lower at 39.981, while the broader Nifty 50 index was ruling at 11,706, down 92 points or 0.78 per cent. In the broader market, the S&P BSE MidCap index slipped 56 points, or 0.37 per cent, and the S&P BSE SmallCap index was down 10 points. “The Coronavirus has taken center stage in terms of major cues to dictate the direction of equity markets around the globe. It will continue to remain a dominant factor which will cause near term volatility. We are in expiry week where expiry related move will also cause near term volatility,” Santosh Meena Senior Analyst TradingBells said.
23 Sensex stocks trade in red- Sun Pharma was the top Sensex loser with a decline of 2.57 per cent, followed by Bharti Airtel, IndusInd Bank and Tata Steel. Conversely, Asian Paint, top gainer, was up 0.92 per cent. HUL, Power Grid, UltraTech Cement, SBI and TCS were among other gainers on the index.
Nifty Auto top sectoral loser- All the sectoral indices were trading lower. Nifty Auto index was down 1.30 per cent with Amara Raja Batteries, Motherson Sumi Systems and Ashok Leyland as top losers. While, Nifty Metal index was also trading over 1 per cent lower dragged down by Jindal Steel, Hindalco and Welspun Corp.
Global sell-off- Asian shares fell on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.6 per cent. Australian shares were down 1.77 per cent, while Japan’s Nikkei stock index slid 1.1 per cent. On Wall Street, the Dow and the S&P 500 tanked 3 per cent on Tuesday in their fourth consecutive session of losses. The Dow Jones Industrial Average ended down 879.44 points, or 3.15 per cent, at 27,081.36 and the S&P 500 lost 97.68 points, or 3.03 per cent, to finish at 3,128.21. The Nasdaq Composite dropped 255.67 points, or 2.77 per cent, to 8,965.61.
FII and DII data- On Tuesday, foreign institutional investors (FIIs) sold shares worth Rs 2,315.07 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 1,565.28 crore on a net basis, as per the data available on the NSE.
Coronavirus scare- The World Health Organization says the epidemic has peaked in China, but concern that its spread is accelerating in other countries is likely to keep investors on edge. The virus has claimed almost 3,000 lives in mainland China but has spread to dozens of other countries. Of increasing concern to investors, however, in the rising death toll in other countries. Drastic travel restrictions slammed the brakes on China’s manufacturing and consumer spending, and there are worries other countries will face similar disruptions, as per the Reuters news report.
Modi-Trump meet failed to provide support to Indian bourses- “Trump-Modi meet failed to provide any sentiment boost for the domestic market as there were no key deals . Virus concerns could remain in the limelight as any further supply disruption could hurt global economic growth in 2020,” Vinod Nair, Head of Research at Geojit Financial Services said.