Mumbai – Indian equity benchmarks extended losses for the third straight session and ended sharply lower on Wednesday, mirroring the weakness in global markets.
The BSE Sensex tanked 527 points or 0.7% to close at 71,357, while the NSE Nifty 50 settled at 21,517, down 142 points or 0.7% from its previous close.
Barring realty, PSU bank, and healthcare stocks, all other sectoral indices ended in the red. Metal, IT, and oil & gas stocks were the top losers – down up to 2.5%.
Tata Steel, JSW Steel, Wipro, Infosys, and Tech Mahindra were among the major losers – falling between 2-4% each. On the flipside, ITC, IndusInd Bank, Bharti Airtel, and SBI finished among prominent gainers.
Broader markets outperformed the benchmarks, with Nifty Midcap 100 and Nifty Smallcap 100 settling 0.3% and 0.2% higher respectively.
Global cues remained weak after data showed factory activity contracted across Europe and Asia. Worries over slowing global growth and recession risks prompted investors to exit stocks.
Back home, India’s manufacturing PMI eased to an 18-month low of 54.9 in December, though it remained in the expansion zone for the 16th straight month.
In the Adani saga, the Supreme Court dismissed petitions seeking an independent probe, giving relief to the conglomerate. The judges stated that SEBI could handle the investigation into Hindenburg’s fraud allegations.
On the forex market front, the rupee ended little changed at 83.28 per US dollar, as falling crude oil prices were offset by losses in domestic shares and flat Asian currencies.
Going ahead, Indian markets may continue to see volatility amid the expiry of monthly derivatives contracts this week and concerns over expensive valuations, say analysts.
