On the 50-scrip Nifty, 30 stocks finished the session in the negative zone
The BSE Sensex closed 21 points lower at 33,835 on Wednesday, recovering most of the day's losses, while the NSE Nifty closed above the 10,400 mark. Banking stocks, which had dragged down the indices earlier during Wednesday's session, rose with the Bank Nifty - the NSE's sub-index for banking stocks - closing 0.5 per cent higher. Oil stocks such as Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC) Ltd fell, after global crude prices firmed on strong Chinese factory data, finishing the day 1.5-3 per cent lower.
Here are 10 things to know about Wednesday's trading session:
- The Sensex touched an intraday low of 33,580 while the Nifty hit 10,336 during Wednesday's session.
- On the 50-scrip index Nifty, 30 stocks finished the session in the negative zone.
- Among the top losers on the Nifty50 were ONGC, Indian Oil, Bharti Infratel, Hindustan Petroleum and Hero MotoCorp, finishing the day with losses between 1 per cent and 3 per cent.
- According to market observers, a sharp recovery in banking stocks helped the indices to trim their losses.
- Most financial stocks erased losses from earlier in the session, with the Nifty PSU bank index revers course to close 1.8 per cent higher.
- Weakness in banking stocks earlier in the session came a day after the Reserve Bank of India (RBI) barred all lenders from issuing letters of undertaking - a form of credit guarantee at the heart of a major fraud. Revelations by Punjab National Bank of additional exposure in an alleged fraud further dampened sentiment.
- Punjab National Bank ended up 1.4 per cent, SBI rose 0.9 per cent, Union Bank of India finished 4.6 per cent higher and Bank of Baroda settled up 4 per cent.
- "During the initial hour, our markets extended losses after sliding below previous day's low...the PSU banking basket came back smartly and eventually managed to lift the traders' sentiments to reclaim the 10,400 mark. Today's move clearly indicates that although we are in a 'Sell on rise' kind of market, this market is not willing to give up so easily," said Sameet Chavan, chief analyst-technical and derivatives, Angel Broking.
- Government data during market hours on Wednesday showed that the wholesale price-indexed (WPI) inflation marginally softened during February at 2.48 per cent from 2.84 per cent in the previous month, primarily due to lower fuel and food prices. According to a Commerce Ministry release, the WPI inflation in February 2017 was more than double at 5.1 per cent.
- Separate data earlier this week had shown that retail inflation last month cooled off to a four-month low of 4.4 per cent as compared to 5.07 per cent in January. (With Agency Inputs)
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