The BSE benchmark Sensex tumbled 213 points on Wednesday, thanks to across-the-board selling, mainly in interest rate-sensitive stocks, following a fall in the Asian markets after Moody’s downgraded Japan’s sovereign debt rating.
In last two straight sessions, it had gained 356.8 points, or 2.21 per cent. Besides interest-rate-related stocks, metal and capital goods and information technology counters suffered a heavy setback on selling, ahead of the expiry of August contract tomorrow.
Moody’s Investors Service downgraded Japan’s sovereign debt rating by a notch to AA3 from AA2, with a stable outlook, provoking investors to book profits.
The 50-issue Nifty of the National Stock Exchange also dipped by 60 points, or, 1.21 per cent to 4,888.90 points. Profit-booking in the prevailing uncertain scenario and ahead of the expiry of the derivatives contract tomorrow also weighed on the market sentiment, brokers said.
Selling in heavyweights like SBI, L&T, Tata Steel, ICICI Bank, Tata Motors, Infosys Tech, Coal India, TCS and RIL mainly contributed to the fall, they said. Stocks of rate-sensitive sectors such as auto, banking and realty bore the brunt of selling, they added.
The market is likely to be volatile tomorrow as it will be the last day of the August series derivatives expiry session, analysts said.
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Among the Sensex stocks, Coal India fell by 4.61 per cent to Rs 373.85 on profit booking. While State Bank of India, the country’s largest lender, fell 3.53 per cent to Rs 1,992.15, leading private lender ICICI Bank fell 1.20 per cent to Rs 841.80. Engineering major Larsen & Toubro fell 2.17 per cent to Rs 1,557.90 and Tata Steel 4.28 per cent to Rs 455.40.
Among IT stocks, TCS and Infosys dropped 1.71 per cent and 1.06 per cent to Rs 962.75 and Rs 2,249.95, respectively. Wipro fell 1.05 per cent to Rs 329.65. While Tata Motors fell 3.9 per cent to Rs 700.70, Maruti dropped 3.69 per cent to Rs 1,115.15 on the BSE. All the 13 sectoral indices closed with losses.