Sensex tanks over 300 points; auto, banking stocks drag

The S&P BSE Midcap index shed nearly 0.8%, while S&P BSE Smallcap index was down 0.5%

The benchmark indices on Wednesday extended losses in the afternoon trade as banking and automobile stock fell, while negative trade in Asian markets also contributed to the losses.

At 2:52 pm, the S&P BSE Sensex was trading at 29,186, down 298 points, while the broader Nifty50 was ruling at 9,033, down 87 points.  

In the broader market, the S&P BSE Midcap index shed 0.8%, while the S&P BSE Smallcap index was down 0.5%. 

"We reiterate that the Nifty is likely to head towards 9,400-9,600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. Having said that, in between some consolidation or a profit booking (like we saw in the last three sessions) by momentum traders cannot be ruled out," said brokerage Angel Broking in a technical note. 

"On the lower side, 9,100-9,050 levels would provide a strong support in today's session," it added.

Sectors and stocks 

On the Nifty50, financial stocks contributed most to the losses, led by index heavyweight ICICI Bank which was down 1.6%. The Nifty Finance index declined for a fourth consecutive session.

Auto stocks also lost traction with Mahindra & Mahindra and Tata Motors falling 2% and 1.4%, respectively, to pull down the NSE index.

Telecom services provider Bharti Airtel was among the top losers on both the NSE and BSE indices, slipping over 3% in intraday trade. 

Among gainers, Axis Bank surged nearly 3% to Rs 502 after the private sector bank clarified that the news appearing in section of social media stating impending resignation of MD & CEO of bank, is false and speculative.

After initial weakness, shares of Avenue Supermarts advanced over 2% to Rs 657. The parent of supermart chain D-Mart made a stellar debut in the previous session by listing at more than double the issue price of Rs 299. 

Among other gainers, Delta Corp rallied 5% to Rs 178 on BSE in an otherwise weak market ahead of the board meeting today to consider fund raising plans.

Puravankara jumped over 3% to Rs 62 after the company informed that its board has passed an enabling resolution to exit Rs 403 crore investment in Raidurg, Panamaktha Village. 

Global markets

Asian stocks posted their biggest drop in two weeks on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan fell over 2%, its biggest intraday percentage fall since March 9. China's Shanghai Composite was down 0.7%, while Hong Kong's Hang Seng index slipped over 1%. Japan and Australian stocks led regional losers.

On Wall Street, Both the S&P 500 and the Dow Jones Industrial Average lost more than 1% on Tuesday in frantic trading, their biggest one day slide since Trump's election victory in November. US futures were down 0.3%.

(With inputs from Reuters)