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Benchmark indices erased all early gains and were trading in the red during the afternoon on Wednesday amid profit-booking.
After opening on a slightly positive note amid positive global cues, the market erased all gains, lacking fresh triggers. Multiple counters faced selling pressure.
The larger market (mid-cap and small-cap stocks) recovered marginally from previous losses, but remained in the red as the sell-off continued.
At 1:01 pm, the BSE Sensex was trading at 54,359.88, down 194.78 points or 0.36 per cent. It hit an intraday high of 54,758.74 and a low of 54,167.20. The Nifty 50 was trading at 16,230.35, down 49.75 points or 0.31 per cent. It hit an intraday high of 16,338.75 and a low of 16,162.55.
JSW Steel, Tata Steel, Hindalco, Powergrid and IOC were the top gainers on the Nifty 50 while Shree Cements, Mahindra & Mahindra, Bajaj Auto, Kotak Bank and Sun Pharma were the top laggards.
BSE chief for extended trading hours for stocks, on par with commodities
On the global front, even as the US indices ended at a new peak as the US Senate passed a $1-trillion infrastructure Bill, strong economic data may nudge the Fed to hint at tapering earlier than expected, impacting the domestic market, as per experts.
“Tapering hints have the potential for capital outflows from EMs and a sharp correction in the market,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sell-off in broader market continues
Broader indices remained in the red. Nifty Midcap 50 was down 0.30 per cent while Nifty Smallcap 50 was down 1.29 per cent. The S&P BSE Midcap was down 0.90 per cent while the S&P BSE Smallcap was down 1.61 per cent.
India INX to offer trading in global stocks
The major reason for the heavy correction in the mid and small-cap space is due to a new surveillance framework proposed by BSE to curb excessive price movement. According to a BSE circular, a stock that is priced at ₹100 and is already in the 10 per cent circuit filter can rise by just ₹30 in a week and ₹100 in three months. Similarly, a stock priced at ₹100 can fall by ₹25 in a week and ₹50 in three months. It has spelt out several such caps with regard to stocks that attract circuit filters between 2 and 20 per cent.
Sectoral indices largely in the red
On the sectoral front, all indices except Nifty Metal, Nifty PSU Bank and Nifty Oil&Gas were in the red.
Metals remained resilient and Oil & Gas stocks recorded marginal gains while PSU Bank traded flat.
Pharma, healthcare, consumer durables and realty faced increased pressure. Auto and financials also extended losses.
Nifty Metal was up 2.29 per cent while Nifty Oil & Gas was up 0.31 per cent.
Meanwhile, Nifty Pharma and Nifty Healthcare Index were down 1.63 per cent and 1.47 per cent, respectively. Nifty Consumer Durables was down 1.32 per cent while Nifty Realty was down 1.15 per cent.
Nifty Bank and Nifty Financial Services were down 0.84 per cent and 0.87 per cent, respectively while Nifty Auto was down 0.99 per cent.
The volatility index rose 2.73 per cent to 13.05.
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