MUMBAI– Indian equity markets closed lower on Wednesday, extending this week’s losing streak as persistent selling in IT companies combined with profit booking in auto, banking, and financial services shares.
The Sensex dropped 386.47 points, or 0.47 percent, to end at 81,715.63. The 30-share index opened at 81,917.56, below Tuesday’s close of 82,102.10, and slipped further during the session to touch an intra-day low of 81,607.84. The Nifty 50 settled at 25,056.90, down 112.60 points, or 0.45 percent.
Analysts said investors have been trimming positions following GST-related reforms and ahead of second-quarter earnings. They pointed to underperformance in IT stocks amid higher H-1B visa fees, as well as cautious sentiment tied to U.S. trade rhetoric and weak global cues.
“Profit booking has been observed in Indian markets post-GST reforms, as investors recalibrate valuations and Q2 earnings expectations. IT stocks underperformed due to H-1B fee hikes, while U.S. trade rhetoric amid ongoing negotiations and weak global cues are prompting caution,” one market strategist said.
From the Sensex basket, Tata Motors, Bharat Electronics, Ultratech Cement, Tech Mahindra, Mahindra & Mahindra, TCS, Axis Bank, Titan, Kotak Bank, ICICI Bank, HDFC Bank, Bajaj FinServ, and Eternal closed lower. Gainers included PowerGrid, Hindustan Unilever, NTPC, HCL Tech, Maruti, Larsen & Toubro, and Asian Paints.
Sectoral indices mirrored the broader weakness. Nifty Auto fell 314 points, or 1.15 percent, while Nifty IT declined 254 points, or 0.72 percent. Nifty Bank dropped 388 points, or 0.70 percent, and Nifty Financial Services slipped 171 points, or 0.64 percent.
Broader markets also saw losses: Nifty Next 50 declined 835 points, or 1.20 percent; Nifty 100 shed 149 points, or 0.58 percent; Nifty Midcap 100 lost 572 points, or 0.98 percent; and Nifty Small Cap 100 ended 122 points, or 0.67 percent lower. (Source: IANS)
