Equity benchmarks corrected for third consecutive session Wednesday, weighed by weak global cues post fall in crude oil prices and widening trade deficit in October.
The 30-share BSE Sensex slipped 181.43 points to 32,760.44, dragged by metals, FMCG, pharma and select banks stocks.
The 50-share NSE Nifty lost 68.60 points to 10,118, taking the total loss to 372 points from its record high of 10,490.45 hit last week.
“Setbacks like widening in trade deficit, slowdown in factory output and hike in crude oil prices impacted the market which was already trading at premium valuation,” Vinod Nair, Head of Research, Geojit Financial Services said.
Additionally, choppy Q2 results during the latest leg of the result season failed to provide a reasonable comfort, he added.
Anand James, Chief Market Strategist of Geojit Financial Services feels the markets are pricing in the potential for a fiscal deficit target being pushed higher, with recent data showing pressures from both weak exports as well as high oil prices.
Global markets moved lower today on weaker oil prices. Japan’s Nikkei, China’s Shanghai Composite, Hong Kong’s Hang Seng and Australia’s ASX 200 ended lower by 0.6-1.6 percent while European stocks like France’s CAC and Britain’s FTSE were down 0.55 percent. Germany’s DAX was down 1.2 percent at the time of writing this article.
Brent crude futures fell 1.17 percent to USD 61.48 a barrel after the International Energy Agency cast doubts over the demand outlook.
Back home, the trade deficit widened to USD 14 billion in October 2017 as against USD 11.13 billion in October 2016 as exports declined by 1.12 percent to USD 23 billion and imports grew by 7.6 percent to USD 37.11 billion YoY.
the broader markets fell more than equity benchmarks, with the Nifty Midcap shedding 1 percent on weak breadth. About three shares declined for every share rising on the NSE.
All sectoral indices ended in red as Nifty Metal, Pharma, FMCG and PSU Bank were down 1-3 percent.
Today’s fall was not driven by heavyweights. Bharti Infratel was loser for second consecutive day, down nearly 5 percent. In previous trading session, Bharti Airtel through its arm sold tower company’s shares worth Rs 3,323 crore.
Sun Pharma lost 4 percent post Q2 earnings. Vedanta, Hindalco and Tata Steel were down 1-4 percent following correction in global metals prices while MRF, CEAT and Balkrishna Industries gained 1-4 percent on fall in rubber prices.
After correction in crude oil prices, ONGC slipped 2.5 percent while IOC and HPCL gained 0.6 percent and BPCL was up 2.4 percent.
ITC, IndusInd Bank, Tata Motors, Bharti Airtel and HUL among others declined 1-2 percent whereas Kotak Mahindra Bank, Eicher Motors, Tech Mahindra and Asian Paints gained 1-2 percent.
Anil Dhirubhai Ambani Group stocks were sharply lower today. Reliance Communications, Reliance Capital, Reliance Infrastructure, Reliance Home finace, Reliance Nippon and Reliance Power were down 6-12 percent.
Fortis Healthcare was up 8 percent after the board has approved the proposed acquisition of entire portfolio of assets of Singapore-listed RHT Health Trust for an enterprise value of around Rs 4,650 crore.
Graphite India, Goa Carbon, Rain Industries, Phillips Carbon and HEG, which had been rallied sharply last month, corrected 5-7 percent today on profit booking.