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Benchmark indices ended lower amid volatile trades on continued selling by the fund investors in healthcare and auto shares. A depreciating rupee, decline in crude oil prices, weak macro economic parameters and global growth concerns dampened the sentiments of the market participants.
Provisionally, the 30-share Sensex ended down 95 points at 26,687 and the 50-share Nifty gave off 45 points to close at 8,023.
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(updated at 2.30 PM)Benchmark indices are trading flat in late noon trades as gains in financials and metal shares helped offset losses in healthcare, FMCG and auto stocks. Meanwhile, Investors remained cautious on the back of a depreciating rupee, decline in crude oil prices and global growth concerns.
At 2.30 PM, the 30-share Sensex is down 19 points at 26,783 and the 50-share Nifty is up 26 points at 8,049.
During the early trades, the 30-share Sensex was down 230 points at 26,550 and the 50-share Nifty was down 79 points at 7,988, below the 8,000 mark for the first time since October, 28.
Meanwhile, foreign institutional investors were net sellers in Indian equities worth Rs 1,247.24 crore on Tuesday, as per provisional stock exchange data.
Key Events :
Brent futures fell more than 1% on Wednesday, down for a sixth straight session, with persistent worries of a supply glut keeping prices near a 5-1/2 year low under $60 a barrel.
Russia failed to halt the collapse of the rouble leaving President Vladimir Putin facing a full-blown currency crisis that could weaken his iron grip on power.
A 6.5%point interest rate rise to 17% overnight failed to prevent the currency hitting record lows in a 'perfect storm' of low oil prices, looming recession and Western sanctions over the Ukraine crisis.
The weakness in the rupee is seen continuing into 2015, amid concern on slowing of foreign inflow and is currently trading at 63.60 against the US dollar.
However, on the brighter side, according to analysts in a Reuters poll, Indian shares will continue this year's big rally in 2015, propelled by the passage of key fiscal reforms, who see another year of 20% plus gains.
Key Stocks:
On the sectoral front, BSE Healthcare index is the top loser down 1.5% followed by FMCG, Auto and Realty indices trading lower by 1% each. However, BSE Metal and Oil & Gas indices are up 1.4% and Bankex is up 1%.
Mortgage lender HDFC is up over 0.7%. HDFC Property Fund, set up by Housing Development Finance Corp Ltd, India's biggest mortgage lender, plans to raise a $500 million fund to invest in residential real estate projects, said people directly involved in the process.
In the banking pack, SBI, Axis Bank and ICICI Bank are up 0.4-2.5% each.
Oil shares recovered on the back of short covering at lower after the sharp decline tracking weak global cues. ONGC is up 2% and Reliance Industries is up 1% while GAIL is up 0.6%.
Metal shares which had lost ground on the back of weak China manufacturing firmed up in noon trades. Sesa Sterlite is up 3.2% and Hindalco gained nearly 1%. Tata Steel is up 2% The Odisha state government has issued orders to restart operations of four captive iron ore mines of Tata Steel following an interim order of the Odisha High Court (HC).
Pharma shares are among the losers on fears that a crash of the Russian currency would hurt their exports. A weaker currency raises the cost of imports hurting further demand. Sun Pharma and Cipla are down between 1.5-2.5%.
However, Dr Reddy's Labs rebounded from day's lows. A pharma analyst at Angel Broking belives that it’s unlikely to have much impact on the profitability of the company, as the company derives only 15% of its sales (in FY2014) from the Russia and other markets in the region. The stock is up 1.2%.
ITC is down 3.3% along while Tata Motors slipped 1.5% on the back of weak JLR sales.
In the broader market, the BSE Mid-cap index is down 0.2% and Small-cap index fell 0.6%.
Market breadth is weak with 1,680 losers and 1,013 gainers on the BSE.
