HDFC, IT stocks weaken Sensex by 535 pts
The broader Nifty of the National Stock Exchange dropped by 148.45 points or 0.69 per cent to 21,517.35.
Representative Image (Reuters)
MUMBAI: Stock markets declined for a second day in a row on Wednesday with benchmark Sensex closing lower by 535 points due to selling in HDFC Bank and IT shares amid weak global trends.
The 30-share BSE Sensex fell by 535.88 points or 0.75 per cent to settle at 71,356.60. During the day, it tumbled 588.51 points or 0.81 per cent to 71,303.97.
The broader Nifty of the National Stock Exchange dropped by 148.45 points or 0.69 per cent to 21,517.35. As many as 32 Nifty shares declined while 18 advanced.
Key stock indices closed near their day’s low levels due to continued fall in IT and banking shares amid weak global cues ahead of the release of the US Fed meeting minutes. Metal and commodities shares also declined while PSU bank, realty and pharma shares gained on renewed buying.
Among the Sensex firms, JSW Steel, Tata Steel, Tech Mahindra, Infosys, Wipro, Tata Consultancy Services, Nestle, HCL Technologies, HDFC Bank and Maruti were the major laggards.
IndusInd Bank, ITC, Bharti Airtel and State Bank of India were among the winners.
“The lack of fresh triggers and concerns over valuation influenced investors to stay sidelined. Weak global indicators, like contraction in China & Euro zone manufacturing data, added concerns about global economic recovery in 2024. Importantly, the market was waiting for the FED minutes later today for rate insights, “ said Vinod Nair, Head of Research at Geojit Financial Services.
India’s manufacturing sector growth fell to an 18-month low of 54.9 in December amid softer increase in factory orders and output, despite minimal inflation, a monthly survey said on Wednesday. The PMI was at 56 in November.
The HSBC India Manufacturing PMI survey, conducted by S &P Global, showed that there were softer, albeit sharp, increase in factory orders and output, while business confidence towards the year-ahead outlook strengthened.
In the broader market, the BSE smallcap gauge climbed 0.30 per cent and midcap index went up by 0.20 per cent.
Among the indices, metal fell by 2.44 per cent, IT declined by 2.31 per cent, teck (1.78 per cent), commodities (0.72 per cent) and financial services (0.20 per cent).
Utilities, services, realty, power and healthcare were among the winners.
In Asian markets, Seoul and Hong Kong settled lower while Shanghai ended in the green.
European markets were trading lower. The US markets ended mostly lower on Tuesday.
