After starting on the green, benchmark indices slid over 1 per cent each at one point during the session. The Nifty50 index closed 0.5 per cent lower at 18,178.1 points breaking the strong support of 18,200 points. The BSE-Sensex closed at 60,923.50, down 0.6 per cent.
Over the course of the past three sessions, investors’ notional wealth has eroded by Rs 8.3 lakh crore.
The losses on the Street were exacerbated by weakness in global equity markets. Asian equities closed lower earlier today as concerns rise over global growth. Following their Asian peers, European stock markets also started the session on a weak footing.
Shares of information technology and Reliance Industries were the main laggards today as they saw some selling pressure. The Nifty IT index closed 2.5 per cent lower and was the worst sectoral performer on the National Stock Exchange.
Shares of Reliance Industries ended 2.4 per cent lower as investors were concerned by the muted user addition numbers for Reliance Jio in August. Dealers said that some investors also looked to book profits ahead of the company’s September quarter earnings on Friday.
In the broader market, the selling pressure continued with the Nifty Midcap 100 and Nifty Smallcap 100 index closing 0.4 per cent and 0.8 per cent lower, respectively.
Shares of Havells India sank nearly 9 per cent as investors were spooked by the management’s commentary on its margins. Similarly, shares of Asian Paints ended over 5 per cent lower after a horror operating performance for the quarter ended September.
Banking stocks were the silver lining in an otherwise torrid session for investors. The Nifty Bank and Nifty PSU Bank index closed 1.3 per cent and 2.7 per cent higher, respectively, aided by some short covering in the weekly options contracts ahead of their expiry today.
Overall the breadth of the market remained weak as declining stocks on the NSE outnumbered advancing scrips.
