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Benchmark indices erased all gains to end lower on Wednesday.
The market opened firm amid mixed global cues but lost momentum in the second half. Indices were dragged further during closing hours by metals, financials, barring PSU Bank stocks and oil & gas stocks. Pharma stocks gained focus today.
The BSE Sensex closed at 61,143.33, down 206.93 points or 0.34 per cent. It recorded an intraday high of 61,576.85 and a low of 60,989.39. The Nifty 50 closed at 18,210.95, down 57.45 points or 0.31 per cent. It hit an intraday high of 18,342.05 and a low of 18,167.90.
Analysts were worried about the impact of commodity inflation on corporate profit margins. Already results of consumer-focussed companies are reflecting this, they added.
Breadth positive
The market breadth remained positive, with 1,787 stocks advancing on the BSE, 1,462 declining and 145 remaining unchanged. Furthermore, 328 stocks hit the upper circuit compared to the 183 stocks locked in the lower circuit. Besides, 179 stocks touched a 52-week high level, and 27 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities said, “Domestic benchmark indices were resilient today amid weak global cue; but gave up initial gains led by selling pressure on financials (excluding PSU banks). Metals and energy stocks also witnessed selling pressure, while pharma, PSU banks and IT arrested significant fall in the market.”
“Despite strong 2QFY22 earnings report card, private banks have seen steep contraction today mainly led by profit booking after the recent sharp rally and monthly expiry factor,” added Modi.
Asian Paints, UPL, Divi’s Lab, SBI Life and Cipla were the top gainers on the Nifty 50, while Axis Bank, Bajaj Finance, ONGC, Tata Motors and Bajaj Finserv were the top laggards.
PSU Bank in focus
On the sectoral front, financials, barring PSU Bank, metals, auto and oil & gas stocks, dragged while PSU Bank, pharma, and IT gained.
Nifty Bank and Nifty Private Bank were down 0.88 per cent and 1.37 per cent, respectively, at closing. However, Nifty PSU Bank closed 2.05 per cent higher.
Nifty Metal was down 1.52 per cent, while Nifty Auto was down 0.50 per cent. Nifty Oil & Gas was down 0.77 per cent.
Meanwhile, Nifty Pharma and Nifty Healthcare Index were up 0.88 per cent and 0.80 per cent, respectively. Nifty IT was up 0.97 per cent.
Broader indices
Broader indices closed in green. Nifty Midcap 50 was up 0.22 per cent while Nifty Smallcap 50 ended flat, up 0.04 per cent. The S&P BSE Midcap was up 0.02 per cent, while the S&P BSE Smallcap was up 0.30 per cent.
The volatility index rose 0.44 per cent to 16.83.
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