NEW DELHI: Benchmark indices slid for the second day on Wednesday ahead of the US Federal Reserve meeting outcome, in which the central bank may announce a tapering timeline.
India VIX, a barometer of volatility, plunged over 5 per cent. But the movement of headline indices shows traders are not keen to go long ahead of an extended weekend.
The 30-share pack Sensex declined 257 points or 0.43 per cent to close at 59,772. The index fell nearly 600 points from the day’s high. Its broader peer NSE Nifty dropped 60 points or 0.33 per cent to 17,829.
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“After a sideways movement post its positive opening, the indices took a downturn as major global indices traded weak ahead of the Fed policy announcement. The Federal Reserve is widely expected to announce the tapering of its asset purchase program in the near-term while any hint on interest rate reversal is keeping investors on the edge,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Trent gains 4% as performance improves rapidly in Q2
- Mazagon Dock Shipbuilders continues rally, jumps another 6%
- Bharti Airtel drops 2% after Q2 show despite improved performance
- SBI adds 2% after superb Q2 numbers; Street expects re-rating
- IPO watch: SJS subscribed 1x, Sigachi 67x and Policybazaar 9x
Among the bluechip names, L&T was the top gainer, rising 4.25 per cent. Asian Paints, Hindalco Industries, Grasim Industries, UPL, UltraTech Cements, SBI, Indian Oil and Adani Ports were among other gainers.
Sun Pharma was the top loser in the Nifty pack, falling 3.24 per cent.
, Bharti Airtel, ICICI Bank, Kotak Mahindra Bank, HDFC Bank and
Industries were others that ended in the red.
“All eyes will be on the US Fed meeting tonight. While no action is expected on the rates, commentary on tapering, growth and inflation would be a key thing to watch out for. We reiterate our cautious view on markets and suggest limiting leveraged positions.”
— Ajit Mishra, Religare Broking
Broader market indices also declined, performing in-line with their headline peers. Nifty Smallcap fell 0.66 per cent and Nifty Midcap declined 0.27 per cent. Nifty 500, the broadest index on NSE, ended down 0.21 per cent.
Mazagon Dock Shipbuilders, KPIT Tech, Amber Enterprises, Oberoi Realty, Trent and Godrej Properties were top gainers from the mid and smallcap indices, climbing in the range of 3-7 per cent.
Escorts, Union Bank of India, Indian Bank, IDBI, Lami Organic Chemicals and Jubilant Ingrevia were major losers from the broader market space, falling in the range of 3-6 per cent.
Sectoral matrix was mixed on the NSE. Nifty Realty was the top gainer for another day, up 1.94 per cent. Nifty Metal followed with 0.93 per cent gains. Nifty Private Bank was the top loser, down 1.84 per cent. Nifty Auto, Nifty Bank and Nifty Media were others that fell over a per cent.
Market breadth was in favour of losers as 1,585 stocks ended in the green, while 1,657 names settled with cuts. As many as 207 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 20 names hit 52-week lows, mostly from the microcap space. About 320 stocks hit upper circuit limits and 175 lower circuit limits.
European markets were trading mixed. London-based FTSE was down 0.28 per cent while Paris and Frankfurt climbed 0.01 per cent and declined 0.05 per cent, respectively. In Asia, Indonesia and Taiwan closed in the green, while the rest ended in the red. Japan was closed for a holiday.