Indian stock market fell for the third consecutive session on Wednesday after the banking and pharma stocks slipped in the morning trade followed by the increased caution after the domestic market regulator SEBI yesterday clamped down on 331 suspected shell companies.
Indian stock market fell for the third consecutive session on Wednesday after the banking and pharma stocks slipped in the morning trade followed by the increased caution after the domestic market regulator SEBI yesterday clamped down on 331 suspected shell companies listed on exchanges. Overall sentiments of market participants were also brought down by the escalating tensions on the Korean peninsula that hit regional markets. BSE Sensex hovers around 31,900 level and NSE Nifty 50 trades below 9,950 points.
The shares of the heavyweight companies HDFC Bank, Tata Motors, Sun Pharma, ITC, Axis Bank and ICICI Bank contributed the most in the down surge of the benchmark indices. The Nifty Pharma was the worst hit index, tumbled 2.75% to 8,874.8 points with the shares of blue-chip companies Dr Reddy’s Laboratories, Lupin and Sun Pharmaceuticals hitting the 52-week low losing up to 3.84%.
The shares of drugmaker Aurobindo Pharmaceuticals slipped 5% to the day’s low of Rs 690 ahead of the Q1 earnings while Sun Pharmaceutical shares slumped as much as 5.32% to Rs 475.05 its lowest in over four years after unit Taro Pharmaceutical Industries profit halved to $54.5 million for the April-June quarter.
The Tata group firm Titan shares advanced 2.35% to Rs 623.75 after the e-commerce giant Amazon yesterday announced its partnership with India’s iconic lifestyle brand Titan to help them foray into the US market.
HDFC Bank shares continue to drag Bank Nifty even after the announcement to expand its corporate loans through refinancing. Shares of the most valuable private sector lender were trading down 0.95% to Rs 1,761 while the banking sector index Bank Nifty loses 0.62% at 24,448.15 points. At a time when a majority of lenders are going slow on corporate loans due to their exposure and capital limits, HDFC Bank is seeking to expand its corporate loan book through refinancing.
The broader Nifty 50 was down 0.4% at 9,938.85 points and the benchmark Sensex was 0.42% lower at 31,880.54 points while Nifty Next 50 shed nearly 274 points or 0.97% at 27,870.8 points.