Markets Snap Two Days Of Gains; Sensex Closes 173 Points Lower, Nifty Settles At 11,691

After registering record highs for two consecutive sessions, domestic markets closed in the red on Wednesday. BSE benchmark index Sensex fell 173.70 points, or 0.45 per cent, to close at 38,722.93, while the broader NSE Nifty50 shed 46.60 points to end at 11,691.90. The fall was led by energy stocks on both the indices. Top laggards on the Nifty50 were Coal India, Reliance Industries and Power Grid Corporation, finishing with losses of around 2-3 per cent.

"Market gave up some gains due to a weak rupee and profit booking ahead of F&O expiry tomorrow," Vinod Nair, Head of Research, Geojit Financial Services Ltd said.

However, gains in PSU banking and metal stocks limited the downside.

The Nifty PSU Bank index gained 1.6 per cent, which was led by Bank of Baroda; and the Nifty Metal closed 1.3 per cent higher. The gains were led by JSW Steel which jumped 8.6 per cent to close at Rs 397.80.

Nifty Energy, a sectoral index on the NSE, closed 1.1 per cent lower at 16,059.95. 

The Nifty Bank also fell marginally by 0.16 per cent with Yes Bank and IndusInd Bank losing 1.2 and 1.6 per cent respectively.

Sentiment also took a hit after rating agency Moody's Investors Service today said there are risks of India breaching the 3.3 per cent fiscal deficit target for the current financial year as higher oil prices will add to short-term fiscal pressures, brokers said.

On a net basis, foreign funds sold shares worth Rs 161.05 crore, while domestic institutional investors offloaded shares to the tune of Rs 199.28 crore yesterday, provisional data from the NSE showed.

Meanwhile, the rupee plunged to a lifetime low of 70.58 against the US dollar on strong month-end demand for the American currency amid foreign fund outflows.

(With PTI Inputs)