Growth woes, rate cut uncertainty dent market; Nifty tanks 1%
Mumbai: Frantic across-the-board selling triggered by uncertainties over interest rate cut and subdued overseas sentiment dragged the benchmark CNX Nifty down by a hefty 63 points, leading it to close below the 5,900-level on the National Stock Exchange (NSE) on Wednesday.
Financials, technology, auto, energy and metal stocks were among the top losers. Mid and small stocks were once again hammered with scrips tumbling between 5 to 10 percent. The sectoral CNX-Nifty fell by a massive 184 points.
Fading rate cut hopes on the back of conflicting macro economic indicators and tomorrow's headline inflation numbers ahead of the RBI's March 19 policy review meet weighed on the market, which saw heavy unwinding from traders.
The sentiment was further dampened by signs of global equities losing momentum after a recent rally.
Indian economy provided hints of some pick-up in activity with slight improvement in industrial output for January but consumer inflation remained stubbornly high.
US stocks ended lower on Tuesday, but the Dow Jones managed to finish at record high for the sixth straight day.
The 50-share Nifty plummeted to a low of 5,842.25 before concluding at 5,851.20, posting a steep fall of 62.90 points, or 1.06 percent, from the last close.
Among the top Nifty laggards, Hindalco fell 3.77 percent, Siemens 3.48 percent, ICICI Bank 3.48 percent, Bajaj Auto 3.45 percent, Kotak Bank 3.43 percent, Jindal Steel 3.38 percent, Bank of Baroda 3.10 percent, Axis Bank 3.09 percent, Maruti 3 percent and ACC slumped 2.88 percent.
The notable smart movers included Sun Pharma, Bharti Airtel, Asian Paint, ITC, HCL-Tech, HULr, Ranbaxy, Lupin, PowerGrid and Wipro.
Turnover in the cash segment declined to Rs 9,228.56 crore from Rs 9,965.09 crore yesterday. A total of 5,571.83 lakh shares changed hands in 50,48,838 trades. Total market capitalisation stood at Rs 64,95,906 crore.