An evening walk down Dalal Street | Sensex cracks over 360 points, Nifty just below 10,800; midcaps decline
Weak global cues, dip in GST collections and fall in auto stocks weighed on equities on Wednesday. Though indices ended off low points, the closing levels reflected a day of negative trade.
A depreciating rupee also added to the woes of investors. The currency breached 70 per US dollar and fell around a percent.
The day began on a lower note as weak handover from Asian markets dragged indices lower. Apart from that, tumble in auto stocks too added to the selling pressure.
Weakness was visible among automobiles, banks, energy, metals and pharmaceuticals. The Nifty Midcap index, too, fell over a percent during the trade.
At the close of market hours, the Sensex was down 363.05 points or 1.00% at 35891.52, while the Nifty down 117.60 points or 1.08% at 10792.50.
The market breadth was negative as 941 shares advanced, against a decline of 1,577 shares declined, while 169 shares were unchanged.
Sun Pharma and TCS were the top gainers, while Vedanta, M&M, Eicher Motors and JSW Steel lost the most.
Stocks in the News
Shares of NMDC gained nearly 1 percent as Board will consider buyback of shares.
Shares of JSW Steel and Tata Steel slipped 4-5 percent after brokerage house CLSA has downgraded the stocks to sell.
Shares of Eicher Motors slipped 9 percent after company reported weak motor cycle numbers for the month December 2018.
Commercial vehicle makers Tata Motors and Ashok Leyland shares dropped around 2 percent after reporting dismal performance in December sales.
Vedanta shares slipped 4 percent after the Tamil Nadu government moved Supreme Court against the order of National Green Tribunal allowing reopening of Sterlite’s Tuticorin unit.
NCC shares rallied 1 percent after the company received four new orders totalling to Rs 2,890.7 crore in December 2018.
Shares in Asia were mostly lower. South Korea’s Kospi slipped 1.52 percent to close at 2,010.00
European shares fell as negative sentiment took over. Stoxx 600 fell more than 1 percent in morning trade, with all sectors and major bourses in the red. Basic resources stocks were the worst performers, with the sector down almost 2.6 percent on the back of weak Chinese manufacturing data.