The domestic stock market opened lower on Wednesday as Asian shares and US stock futures slipped in the early morning trade today. The sentiments were also negative as the Indian stock market watchdog yesterday clamped down on 331 suspected shell companies.
The domestic stock market opened lower on Wednesday as Asian shares and US stock futures slipped in the early morning trade today. The sentiments were also negative as the Indian stock market watchdog yesterday clamped down on 331 suspected shell companies listed on exchanges. BSE Sensex opened below 32,000 level, down 88 points and NSE Nifty declined 17 points to open at 9,961.15 points on Wednesday.
Within the wee minutes of trading both the benchmark indices further tripped with the benchmark Sensex losing nearly 170 points to the mark a low of 31,843.45 points while the broader Nifty too lost over 50 points to a low of 9,925.9 points. Shares of Eicher Motors (up 0.29%) and Tata Motors (down 0.79%) were little changed while Aurobindo Pharma (down 2.81%) was the top loser on NSE Nifty, as these blue-chip companies are queued up with their corporate earnings for the April-June quarter today.
Shares of IOC (up 2.72%), Hindalco (up 2.49%), Vedanta (up 1.88%), BPCL (up 1.11%), NTPC (up 0.91%) and Hero MotoCorp (up 1.76%) were the top gainers on the wider Nifty 50 index. Most of the sectoral indices fell with the losses led by realty index which fell 1.82% followed by pharma, FMCG, private bank, financial services, bank, media while IT, metal and PSU bank index were trading marginally higher with gains up to 0.86%.
Other shares which will be in focus ahead of their first quarter results are Ajanta Pharma, AU Small Finance Bank, Bayer CropScience, City Union Bank, Engineers India, Inox Wind, Mahanagar Gas, Max Financial Services, NALCO, NHPC, NMDC, Parag Milk Foods, Thomas Cook, VA Tech Wabag, Finolex Cables, GMDC, Shankara Building Products, Tube Investments Of India, Unichem Laboratories and Varun Beverages.
The rupee weakened by 16 paise to 63.79 against the US dollar in early trade today as the greenback firmed up overseas amid a lower opening in the domestic equity market.
On Tuesday investors were spooked after the markets watchdog directed bourses to initiate action against the suspected shell companies. These scrips will not be available for trading this month. Brokers said the order raised concerns of more such regulatory action. A majority of these companies are apparently facing probe for alleged tax evasion and corporate frauds and have been referred by the Income Tax Department and SFIO to the corporate affairs ministry and Sebi for further action.
U.S. stocks closed lower on Tuesday after a late afternoon selling spree as investors fled for safety after U.S. President Donald Trump vowed to respond aggressively to any threats from North Korea. The Dow Jones Industrial Average ended down 0.15% at 22,085.34 points, snapping a 9-day streak of closing records. The S&P 500 lost 5.99 points to close at 2,474.92 points and the Nasdaq Composite dropped 13.31 points to 6,370.46 points.