New Delhi, 26 August (H.S.):
Indian equity markets reversed their early gains and ended lower on Wednesday amid concerns over a possible escalation of tensions in West Asia. The United States’ warning of tougher economic measures against Iran and possible action against countries trading with Tehran has also raised concerns about potential repercussions for the global economy. Against this backdrop, domestic equities surrendered their initial strength and slipped into negative territory.
The market opened on a firm note, with buying momentum continuing during the first half-hour of trading. However, selling pressure subsequently intensified, dragging both benchmark indices lower. At the close, the Sensex fell 0.24 per cent, while the Nifty declined 0.52 per cent.
The BSE Sensex opened 236.01 points, or 0.30 per cent, higher at 77,892.10. Shortly after the opening bell, sustained buying pushed the index up 330.75 points, or 0.43 per cent, to an intraday high of 77,986.84 within the first half-hour.
The gains, however, failed to hold as selling pressure emerged across the market. The Sensex subsequently slipped into negative territory and fell 513.90 points from its intraday peak. It eventually closed 183.15 points, or 0.24 per cent, lower at 77,472.94.
Similarly, the NSE Nifty opened marginally higher by 7.40 points, or 0.03 per cent, at 24,341.95. Initial buying lifted the index by 44.05 points, or 0.18 per cent, to an intraday high of 24,378.60.
The rally was short-lived, however. After the first half-hour, bears gained control of the market and broad-based selling pushed the index steadily lower. The Nifty fell 170.85 points from its day’s high before ending 126.80 points, or 0.52 per cent, lower at 24,207.75.
Among sectoral indices, metal and private banking stocks witnessed sustained buying during the session. PSU banks and healthcare indices also closed in positive territory. In contrast, IT and infrastructure stocks faced persistent selling pressure. Automobile, capital goods, consumer durables, FMCG, oil and gas, public-sector enterprises and realty indices also ended in the red.
The broader market witnessed mixed trends. Mid-cap stocks remained under pressure, with the Nifty Midcap index declining 0.10 per cent. Small-cap stocks, however, attracted sustained buying, helping the Nifty Smallcap index close 0.81 per cent higher.
The market decline also eroded investors’ wealth by more than Rs 80,000 crore. The combined market capitalisation of companies listed on the BSE fell to Rs 493.82 lakh crore (provisional) at the end of Wednesday’s trading session, compared with Rs 494.64 lakh crore on Tuesday. This represented a decline of approximately Rs 82,000 crore in investors’ wealth in a single session.
A total of 4,540 stocks were actively traded on the BSE. Of these, 2,375 advanced, 1,944 declined and 221 closed unchanged. On the NSE, 3,127 stocks saw active trading, with 1,736 ending higher and 1,391 finishing lower.
Among the 30 Sensex constituents, 13 stocks closed with gains while 17 ended lower. On the Nifty, 14 of the 50 constituent stocks finished in positive territory, while 36 declined.
Kotak Mahindra Bank emerged as the biggest Sensex gainer, rising 3.76 per cent, followed by Axis Bank, which gained 1.62 per cent. JSW Steel advanced 1.57 per cent, UltraTech Cement rose 1.53 per cent and HDFC Life Insurance gained 1.15 per cent, making them the top five gainers of the session.
On the losing side, Bharti Airtel declined 2.31 per cent, Power Grid Corporation fell 2.14 per cent, Infosys dropped 2.10 per cent, Larsen & Toubro slipped 1.96 per cent and Nestle India declined 1.86 per cent, making them the five biggest losers of the day.
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Hindusthan Samachar / Jun Sarkar