Mumbai: After a largely choppy trade session for the better part of Wednesday the Sensex closed 336 points lower owing to the last hour selling in index heavyweight ITC, which missed estimates in its quarterly result.
ITC lost over 4 per cent after it reported its third quarter results on Wednesday. The FMCG major reported a 3.85 per cent year-on-year (y-o-y) growth in its standalone net profit.
Globally, market sentiments were weak over concerns of a slowing global economy and the ongoing US-China trade tension.
The Indian rupee, however, gained 17 paise to trade at 71.27 (around 3.30 p.m.,) against the US dollar, providing some support to the overall dismal sentiment. It closed at 71.27 per dollar on Tuesday.
The BSE Sensex closed 336.17 points down at 36,108.47, after touching a high of 36,521.47 and a low of 36,037.90.
The benchmark index opened higher on Wednesday, at 36,494.12 points, from its previous close of 36,444.64.
The broader Nifty50 ended lower by 91.25 points or 0.84 per cent at 10,831.50.
Metal stocks were back in favour on Wednesday after closing 2 per cent lower on Tuesday, while IT, FMCG and financials came under selling pressure.
Markets globally had reversed course after the International Monetary Fund (IMF) revised down its forecast for global growth.
Analysts said IMF now projects a 3.5 per cent growth rate worldwide for 2019 and 3.6 per cent for 2020 which is 0.2 and 0.1 percentage points below its last forecasts in October 2019, making it the second downturn revision in three months.
Investors were also cautious owing to reports that the US turned down an offer to hold preparatory trade talks with China. This was later denied by the US administration.
Stock-wise, Sun Phrama gained over 3 per cent, the most among the 30-stock Sensex, followed by Yes Bank, Tata Steel, Hindustan Uniliver and Bajaj Finance.
Power Grid, Infosys, Mahindra and Mahindra and NTPC lost in the range of 1 to 3.50 per cent.