Markets extend losses on slowdown fears; Tata Motors tanks 9 pc
Benchmark indices nursed losses for the second straight session on Wednesday as investor sentiment remained at a low ebb amid concerns over the economy losing momentum.
Mumbai: Benchmark indices nursed losses for the second straight session on Wednesday as investor sentiment remained at a low ebb amid concerns over the economy losing momentum.
After dropping 305 points intra-day, the 30-share BSE Sensex settled 267.64 points or 0.72 percent lower at 37,060.37, weighed by consumer goods, banking and financial counters.
The broader NSE Nifty shed 98.30 points or 0.89 percent to finish at 10,918.70.
With more and more companies reporting stuttering sales and layoffs, market participants are keenly awaiting measures from the government to prop up growth and revive consumer sentiment, traders said.
Tata Motors was the biggest laggard in the Sensex pack, plummeting 9.29 percent, followed by Yes Bank at 8.21 percent.
Other losers included Tata Steel, ONGC, IndusInd Bank, SBI, L&T, ITC, Vedanta, HCL Tech, ICICI Bank and M&M, which declined up to 4.26 percent.
Hero MotoCorp, Infosys, Tech Mahindra, HUL, Bajaj Auto, Maruti, NTPC and HDFC Bank bucked the weak market trend, rising up to 1.78 percent.
"An extended slowdown in the domestic economy has increased the volume of stressed assets in segments like industrial, infrastructure and financials.
"...weak international prices in segments like metals, oil & gas and exports are increasing the volatility of the market. India is ending as a weak performer given a subdued business outlook and lack of revival in the short-term and action-packed reforms will be required to change the momentum," said Vinod Nair, Head of Research, Geojit Financial Services.
Sectorally, BSE metal, industrials, basic materials, capital goods, oil and gas, realty and consumer durables indices slipped up to 2.92 percent.
IT was the sole gainer, rising 0.16 percent.
The broader BSE midcap and smallcap indices followed the benchmarks, cracking up to 1.43 percent.
Globally, markets were awaiting comments from Federal Reserve Chair Jerome Powell in Jackson Hole, Wyoming, US.
Investors will also be tracking the G7 Summit during August 2527 in France, traders said.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, and Kospi ended on a positive note, while Nikkei settled in the red.
Equities in Europe were trading significantly higher in their respective early sessions.
Meanwhile, the Indian rupee appreciated 22 paise to 71.49 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, spurted 1.28 percent to USD 60.80 per barrel.