Mumbai, Oct 26 (IANS) Disappointing quarterly earning results combined with caution over the rise in non-performing asset (NPAs) levels of the banking sector and massive outflow of foreign funds dragged the Indian equity markets lower on Wednesday.
Besides, lower global crude oil prices and anxiety over the upcoming F&O (futures and options) expiry dented investors' sentiments.
The key domestic indices languished in the negative territory throughout Wednesday's session. The barometer index ended below its psychologically significant mark of 28,000 points.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged lower by 76.05 points or 0.88 per cent to close at 8,615.25 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,050.55 points, closed at 27,836.51 points -- down 254.91 points or 0.91 per cent from the previous close at 28,091.42 points.
The Sensex touched a high of 28,050.55 points and a low of 27,759.56 points during the intra-day trade.
The BSE market breadth was firmly in favour of the bears -- with 1,641 declines and 1,136 advances.
On Tuesday, the equity markets closed in the red due to a massive outflow of foreign funds and profit booking.
The barometer index had receded by 87.66 points or 0.31 per cent to 28,091.42 points, while the NSE Nifty inched lower by 17.65 points or 0.20 per cent to 8,691.30 points.
"Selling pressure was triggered by disappointing quarterly results and growing worries over the rise in the banking sector's NPA levels. Lower crude oil prices and negative Asian and European markets too dragged the key domestic indices lower," Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.
"F&O rollovers were acutely low, with near month derivatives expiring tomorrow. This, read along with selling mode that FIIs have been employing in equities in the last fortnight, investors are obviously taking a cautionary route ahead of US presidential election and FOMC rate decision."
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls: "CNX failed to recover from lower levels due to continued selling pressure."
"Most IT, banking, pharma and FMCG stocks traded lower on selling pressure, while auto and aviation stocks traded firm on buying support."
Desai added: "Oil-gas, textile and media-entertainment stocks traded with mixed sentiments due to profit booking."
In terms of investments, provisional data with the stock exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 1,450.65 crore, whereas the domestic institutional investors (DIIs) invested Rs 989.46 crore.
Major Sensex gainers during Wednesday's trade were: Bharti Airtel, up 2.25 per cent at Rs 318.05; Hero MotoCorp, up 1.29 per cent at Rs 3,421.55; Maruti Suzuki, up 1.56 per cent at Rs 5,871.95; Dr.Reddy's Lab, up 1.34 per cent at Rs 3,243.30; and Hindustan Unilever, up 1.29 per cent at Rs 842.80.
Major Sensex losers were: Axis Bank, down 8.04 per cent at Rs 486.50; Tata Motors, down 4.27 per cent at Rs 529.50; Tata Steel, down 4.01 per cent at Rs 398.85; ICICI Bank, down 3.65 per cent at Rs 278.55; and Adani Ports, down 2.34 per cent at Rs 305.
This website uses cookies.