Sensex Falls Over 300 Points From Day's High As Markets Erase Early Gains

Domestic stock markets gave up early gains on Wednesday with the S&P BSE Sensex benchmark index falling more than 300 points from the day's highest level. The broader NSE Nifty index slid to as low as 12,125.50, reversing direction after touching 12,225.05 at the day's strongest level in the first hour of trade. The Sensex moved in a range of 334.24 points, hitting 41,198.05 on the downside after touching an intraday high of 41,532.29. Losses in banking, auto and energy shares outweighed gains in information technology and pharmaceutical stocks.

At 10:52 am, the Sensex traded 54.12 points - or 0.13 per cent - lower from the previous close at 41,269.69, while the Nifty was down 19.60 points - or 0.16 per cent - at 12,150.25.

Twenty seven stocks on the 50-scrip Nifty benchmark index moved lower at the time. Top laggards in percentage terms were ONGC, Zee Entertainment, Coal India, NTPC, Tata Motors and Power Grid, down between 2.22 per cent and 3.71 per cent. 

On the other hand, Grasim Industries, Infosys, HCL Tech, Vedanta, TCS and Cipla, up between 1.18 per cent and 1.86 per cent - were the top Nifty gainers.

Kotak Mahindra Bank, HDFC and Maruti Suzuki India were the biggest drags on the Sensex. 

Analysts awaited financial results by large cap companies for cues in the near term.

Asian Paints, Axis Bank and Larsen & Toubro will report their earnings for the quarter ended December 31 later in the day.

Equities in other Asian markets steadied on Wednesday as investors took stock of the spread of a new strain of corona virus from China and weighed the possible consequences of a global pandemic.

Fears of contagion, particularly as millions travel for Lunar New Year festivities, knocked stocks from record levels seen on the previous day as investors swapped them for safer assets.

MSCI's broadest index of Asia-Pacific shares outside Japan was last seen trading 0.52 per cent higher after a flat start. Japan's benchmark Nikkei 225 index was up 0.61 per cent at the time after opening 0.1 per cent down.

On Tuesday, the S&P BSE Sensex index had ended 205.10 points - or 0.49 per cent - lower at 41,323.81 and the broader NSE Nifty benchmark settled at 12,169.85, down 54.70 points - or 0.45 per cent - from the previous close.