Sensex Falls 135 Pts, ITC Top Loser Post Q4 Results

Mixed cues from foreign markets and cautiousness among investors post several rating agencies turning their GDP forecast down for India has led the Sensex, Nifty to open lower on Wednesday, June 3. Further, trends on the Singaporean Exchange also indicated a red opening for the Indian equity markets. 

The BSE Sensex opened lower by 135.84 points at 51,799.04 with 12 advances and 18 declines in the 30-share pack. Shares of ITC plunged over two per cent in the early trade after the company announced their Q4 earnings on Tuesday, June 1 and the company reported a standalone profit of Rs 3,748.4 crore in Q4FY21 against Rs 3,797 crore in Q4FY20.

Similarly, the Nifty-50 opened lower by 33.60 points at 15,541.30. 

Shares of Tech Mahindra, HDFC, and Wipro were among the other top drags for the index at the market opening as they shed over a per cent each. 

Among the sectors, except for IT, Banks, and FMCG, all other sectors were trading green backed by buying interest in the spaces. The Nifty IT index declined over a per cent in the early trade dragged by shares of Tech Mahindra, L&T Infotech (-2.89 per cent), and Mindtree (-1.60 per cent). 

Experts feel that the technology shares were trading down in line with the trend in the foreign markets wherein the U.S markets witnessed a heavy selloff in the tech shares which dragged the S&P 500 into the red overnight. 

 Despite declines in the main indices, the broader markets outperformed at the market opening as both BSE Midcap and Smallcap marked handsome gains of over 100 points each. Shares of PNB Housing Finance in the Smallcap space were up by 10 per cent for yet another session on Wednesday. Among the Midcaps, Adani Green Energy and Adani Transmission gained over two per cent each. 

 Moving ahead, experts feel that the overall structure of the market remains positive with a decline in Covid-19 cases in the country and hopes for reopening of the economy in June, and also the stimulus package has created a positive impact on the investor sentiment.

"The overall structure of the market remains positive as fresh covid cases continue to decline and investors are upbeat about unlocking of the economy in June which will help revive commercial activities. Hopes of further stimulus by the government is also bolstering investor confidence," said Siddhartha Khemka of Motilal Oswal Financial Services.