Indian benchmark indexes declined sharply ahead of the last session of trading on Wednesday as shares of oil marketing companies slipped on higher crude prices and the rupee hitting 19-month low. Also, the overall investor sentiment remained negative a day before the expiry of June derivatives contracts as well. The BSE Sensex closed nearly 273 points lower, or 0.77 percent, at 35217.11, while the NSE Nifty 50 ended the day 97.75 points lower, or 0.91 percent, at 10,671.40. Both Nifty MidCap and the BSE MidCap were down 1.50 percent. Asian markets too ended weak with the Hang Seng index down by over 525 points.
Earlier, the markets opened flat, but later advanced on the back of gains in IT stocks. The two Indian indexes turned negative around afternoon as crude prices rose, dragging oil marketing companies, which were among top percentage losers on the NSE index. Bharat Petroleum Corp Ltd, Hindustan Petroleum Corp Ltd and Indian Oil Corp Ltd dropped over 4 percent each. PSB shares fell after the financial stability report from the Reserve Bank of India indicated continuation of NPA stress in the banking sector. Nifty PSU bank index dropped as much as 2.3 percent to its lowest level in five weeks.
(Market update at 3.45pm)
Equity markets further declined in the afternoon session with the BSE Sensex trading lower by almost 140 points, to 35,350.59, while the NSE Nifty 50 was hovering above 10,710 mark on Wednesday. Investors are wary with rising crude prices that will trigger inflation and accelerate fiscal deficit. A weaker rupee hasn't helped their cause although IT stocks have gained in prominence on both indexes so far. The shares of top oil marketing companies, on the other hand, fell on Wednesday and figure among top percent losers on the NSE index. Oil prices are rising due to supply disruptions in Libya and Canada coupled with US attempts to stop Iran imports. The shares of Bharat Petroleum Corp. Ltd fell as much as 5 percent to hit a more than 3-week low of Rs 394.4. Hindustan Petroleum Corp. Ltd plunged as much as 4.5 percent to Rs 285.5, hitting its lowest since May 25. Indian Oil Corp. Ltd slid as much 4.3 percent, on track to post a fourth straight session of loss. Nifty Energy Index fell more than 1 percent to its lowest since June 1.
(Market update at 1.14pm)
Here's what happened around noon session today
The market was trading cautiously in the pre-noon session as rising crude prices as well as a volatile rupee weigh on the sentiment.
The BSE Sensex was seen in the red with the 30-share benchmark index trading lower by 36.08 points, or 0.10 percent, to 35,453.96, while the Nifty 50 declined by 23.20 points, or 0.22 percent, to 10,745.95.
The BSE Sensex opened at 35,543.89 points, after Tuesday’s close at 35,490.04 points. The NSE Nifty 50 opened at 10,785.50 points.
ICICI Bank, oil marketing companies, Idea Cellular, Bharti Airtel, SBI, NTPC were among top losers, while Hindustan Unilever, Bharti Infratel, HDFC twins and IT stocks were among the top gainers. TCS gained as much as 1.79 percent to a record high of Rs 1,885.15.
The weaker rupee was contributing to IT stocks’ gains and oil marketing companies’ losses.
Nifty MidCap and SmallCap continued to underperform. Barring Nifty IT, all sectoral indices were trading in the red. Nifty IT gained 1.24 percent.
The Indian rupee declined by 30 paise to hit a 19-month low of 68.54 against the US dollar in early trade today on strong month-end dollar demand from importers and banks amid sustained foreign capital outflows. This is the rupee's lowest level against the greenback since November 29, 2016.On Tuesday, the rupee lost 11 paise to end at 68.24 against the US dollar.
Foreign portfolio investors (FPIs) sold shares worth Rs 538.40 crore yesterday, as per provisional data issued by the stock exchanges, according to PTI.
Asian markets remained sluggish on Wednesday due to trade tensions between the US and other leading economies. Chinese stocks saw a sharp decline and SGX Nifty remained subdued. Hang Seng was down by 0.75 percent, while Nikkei was trading lower by 0.22 percent.The US markets gained overnight on Tuesday despite the trade concerns, helped by gains in the energy, technology and consumer discretionary sectors.