Mumbai, Jan. 23 (IANS): Negative global cues and a last hour sell-off in the index heavyweight ITC pushed the key equity indices down on Wednesday. The Sensex ended 336 points lower and the Nifty finished the day’s trade session at 10,831.
Indian markets opened on a flat note and traded range bound for most of the day but Sensex fell most in the final hour following a sell-off in the FMCG major ITC.
ITC lost over 4 per cent after it reported its third quarter results on Wednesday. The FMCG major reported a 3.85 per cent year-on-year growth in its standalone net profit, which missed estimates.
“The weakness came on the back of mixed sentiments in the global equity markets reflecting risk aversion on the part of investors in the face of US-China trade standoff and its impact on global growth,” said Deepak Jasani of HDFC Securities.
Investors were also cautious owing to reports that the US had turned down an offer to hold preparatory trade talks with China. This was denied by the US administration.
The BSE Sensex closed 336.17 points down at 36,108.47, after touching a high of 36,521.47 and a low of 36,037.90.
The benchmark index opened higher on Wednesday, at 36,494.12 points, from its previous close of 36,444.64.
The broader Nifty50 ended lower by 91.25 points or 0.84 per cent at 10,831.50
Metal stocks were back in favour on Wednesday after closing 2 per cent lower on Tuesday, while IT, FMCG and financials came under selling pressure.
Markets globally had reversed course after the International Monetary Fund (IMF) scaled down its forecast for global growth.
“It seems markets are unsure about their near term direction. One day we see index trading with immense strength and then we see no follow up move. Post recent breakout from a ‘Diamond’ pattern, index consolidated for few days,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.
“Monday’s close above 10,950 kept the hopes alive but today’s sharp selloff in ITC post its quarterly numbers played a spoil sport. Within the last 45 minutes of trade, Nifty was back to the previous breakout points of 10,830,” Chavan added.
Stock-wise, Sun Phrama gained over 3 per cent, the most among the 30-stock Sensex, followed by Yes Bank, Tata Steel, Hindustan Uniliver and Bajaj Finance.
In contrast, Power Grid, Infosys, Mahindra and Mahindra and NTPC lost in the range of 1 to 3.50 per cent.
The rupee gained 10 paise to settle at Rs 71.34 per US dollar from its previous close of 71.44.
In terms of institutional investment, both foreign and domestic were sellers on Tuesday. FIIs sold stocks worth Rs 78.53 crore and DIIs offloaded stocks worth Rs 84.15.
