The Indian stock market saw another dismal session as a sell-off in global markets amid growing uncertainty about a further stimulus from the U.S. Federal Reserve hurt sentiment and triggered some heavy selling across the board. A rather disappointing industrial output data released on Wednesday added to the woes.
Amid growing uncertainty about Fed stimulus, markets across the Asia-Pacific region ended sharply lower today, with the Japanese Nikkei index plunging over 6%. With European markets too trading quite weak, investors on the Indian bourses were wary of picking up stocks once again.
While the BSE benchmark, which plummeted to 18,765.53, ended the session with a loss of 213.97 points or 1.12% at 18,827.16, the broader Nifty index of the National Stock Exchange settled at 5699.10, slightly off the day's low of 5683.10, recording a loss of 61.10 points or 1.06%.
Automobile, realty, power, healthcare, PSU and information technology stocks mostly ended notably lower. Several stocks from banking, metal and capital goods sectors too closed on a weak note. Oil stocks found some support midway through the session, but retreated and settled off their highs. Consumer durables stocks, which were among the worst hit in the last couple of sessions, bucked the trend and ended higher today.
Tata Motors and Mahindra & Mahindra lost 3.5% and 3.2%, respectively. Bajaj Auto ended lower by a little over 2% and Maruti Suzuki declined by 1.6%, while Hero Motocorp bucked the trend and ended on the positive side.
Sun Pharmaceutical Industries lost 3.2%. The company has announced that it will pay a lump-sum $550 million to settle litigation over sale of the generic pantoprazole drug in the US. The company announced it had, together with its subsidiaries, settled an ongoing litigation pending in the US District Court, New Jersey, regarding the drug.
Under the terms of the litigation settlement among Sun Pharma, Wyeth (now a division of Pfizer Inc) and Altana Pharma AG (now known as Takeda GmbH), the parties have dismissed all their claims. Sun Pharma said the company could continue to sell its generic pantoprazole in the country.
Tata Steel, GAIL India, Sterlite Industries, Tata Power, BHEL, Infosys, Tata Consultancy Services, ITC, Coal India, Cipla, HDFC Bank, Wipro, ICICI Bank and Dr Reddy's Laboratories lost 1% - 3%. HDFC and NTPC also closed notably lower.
Punjab National Bank lost 4.7%. Bank of Baroda, NMDC, Sesa Goa, IDFC, Jaiprakash Associates, Power Grid Corporation, Lupin, Ranbaxy Laboratories, IndusInd Bank, DLF, BPCL, Asian Paints and Grasim Industries lost 1% - 4%.
Jet Airways saw some strong buying on reports the foreign investment promotion board will consider reviewing foreign investment proposals including the Jet-Etihad deal on Friday.
Titan Industries, which suffered some big losses in recent sessions, bounced back and ended with an impressive gain of 4.3%.
Apollo Tyres plunged sharply after the company announced it has entered into a definitive merger agreement to acquire Cooper Tire & Rubber Company in an all-cash deal valued at approximately US$2.5 billion.
The market breadth was very weak. Out of 2456 stocks traded on BSE, 1571 stocks declined. 747 stocks moved up and 138 stocks ended flat.