Sensex ends 85 pts lower as ITC, financial stocks weigh on Dalal Street

NEW DELHI: Domestic equity benchmarks closed below the flatline on Wednesday after gyrating in a wide range thanks to profit booking throughout the day. Broader market stocks, however, surged.

High volatility was witnessed ahead of the outcome of the Monetary Policy Committee policy review, even though the India VIX gauge eased. Selling pressure seen in financial, IT and FMCG stocks reduced towards the end of the session. Weakness across US and Asian markets also added to the negative trend.

The 30-share pack Sensex declined 85.40 points or 0.16 per cent to close at 51,849.48, having moved in a range of 463.34 points during the session. Its broader peer NSE Nifty gained 1.35 points or 0.01 per cent to settle at 15,576.20.

“PSU banks attracted buyers in hopes the government will soon finalise the list for privatisation. In the policy, the RBI is expected to focus on economic growth by maintaining the status quo on policy rates and ensuring liquidity while keeping an eye on the inflationary pressure due to rising commodity prices,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance:

• Emami Paper Mills hits upper circuit as company turns profitable
• Suzlon Energy jumps 10% as company bags 252 MW project
• Lupin gains 3% on heavy volume, crosses 4-year high
• Volatility gauge India VIX eases 1% despite wild moves in indices
• PSU banks shine; Nifty PSU Bank top gainer on NSE

Among the blue-chip stocks, UPL was the top gainer, rising 2.78 per cent. Tata Steel, Hindalco Industries, JSW Steel, Reliance Industries, Adani Ports and HDFC Life Insurance were other gainers.
was the top loser in the Nifty pack, falling 2.88 per cent. Tech Mahindra, Axis Bank, Asian Paints, HDFC, Bharti Airtel, Kotak Mahindra Bank, HCL Tech and TCS were other scrips that ended in the red.

Broader market indices ended higher, outperforming their headline peers. Nifty Smallcap advanced 1.31 per cent and Nifty Midcap rose 1.43 per cent. Nifty 500, the broadest index on NSE, ended 0.48 per cent higher.

IDFC First Bank, Gujarat Gas, RBL Bank, Welspun India, KEI International and Shilpa Medicare were top gainers from midcap and smallcap indices, climbing in the range of 4-9 per cent.

India Cement, Rossari Biotech, Sequent Scientific, Aarti Industries, IndiaMart Intermesh and Mphasis were major losers from the broader market space, falling in the range of 1-3 per cent.

The sectoral matrix was mixed on NSE. Nifty PSU Bank was the biggest gainer, rising 3.03 per cent. It was followed by Nifty Metal and Nifty Auto. Nifty IT was the biggest loser, down 0.75 per cent, followed by Nifty FMCG and Nifty Financial Services.

Market breadth was in favour of gainers as 2,140 stocks ended in the green while 1,973 counters settled with cuts. As many as 305 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 32 scrips hit 52-week lows, mostly from the microcap space. About 465 stocks hit upper circuit limits and 185 lower circuit limits.

European markets were trading higher at the last count. London-based FTSE was up 0.06 per cent while Paris and Frankfurt rose 0.14 per cent and 0.18 per cent, respectively. In Asia, Singapore, Hong Kong, Thailand and China registered losses while the other markets ended in the green.