Sensex closes down 66.5 points; financials drag

BSE Sensex falls 66.51 points, or 0.24%, to close at 27,984.37; Nifty closes down 18.80 points, or 0.22%, at 8,659.10

A file photo of BSE. Photo: Hemant Mishra/ Mint
A file photo of BSE. Photo: Hemant Mishra/ Mint

Mumbai: After its biggest single-day gain in nearly five months in the previous session, market on Wednesday caved in meekly as the Sensex closed the day lower after investors booked profit and global conditions stayed mixed.

Much of the profit-booking happened in FMCG, realty and financial stocks after Tuesday’s biggest single-day rebound in close to five months. Power, PSU, oil and gas, healthcare, consumer durables and IT, however, found some takers, which cushioned the fall.

The 30-share index resumed higher and closed at 27,984.37, down by 66.51 points, or 0.24%. It had posted a rally of about 521 points, its biggest single-session gain in nearly five months, on Tuesday. The 50-share Nifty went down 18.80 points, or 0.22%, to 8,659.10.

“Profit booking dragged the market due to global volatility ahead of tomorrow’s ECB meet. Expectations of a positive outcome from the GST Council did insulate us from the adverse effect of global volatility,” said Vinod Nair, head of research, Geojit BNP Paribas Financial Services. The broader markets outperformed the Sensex, with the small cap index rising 0.55% and the mid-cap 0.06%, as investors continued to widen their portfolios.

Earlier on, sentiment remained positive on sustained foreign inflows amid positive overseas cues amid reports that China’s economy expanded more than expected in the third quarter. But it turned somewhat weak after profit-booking resurfaced at higher levels, dragging down key indices. A total of 14 scrips out of the 30-share Sensex pack ended lower.

ITC plunged the most by falling 2.44%, followed by ICICI Bank (2%). Others that pulled the market lower include Hero MotoCorp (1.28%), Hindustan Unilever (1%), SBI (0.82%) and Asian Paints (0.65%). Wipro, Lupin, Adani Ports, Gail, Power Grid, Sun Pharma, ONGC, NTPC and Dr Reddy’s held up as they ended higher by up to 2.74%.

Among sectoral indices, the FMCG index topped the losers chart by plunging 1.09%. Realty too lost 0.91%, auto 0.54%, banking 0.52% and capital goods 0.05%. Foreign portfolio investors (FPIs) bought shares worth a net Rs.345.04 crore on Tuesday, showed provisional data.

Globally, Asia closed mixed, and a lower opening in Europe had a bearing on trading sentiment here. In Asia, Hong Kong’s Hang Seng fell 0.38% while Japan’s Nikkei rose 0.21% and Shanghai Composite 0.03%. Key indices in France, Germany and the UK were lower by up to 0.28%.