Weak Global Cues Drag Down Equity Indices, Banking Stocks Suffer
Equity benchmark indices closed in the negative zone on Wednesday following losses in Asian markets after yesterday's rout in Wall Street.
Forecasts of double-digit contraction by several global rating agencies in FY21 GDP, rising coronavirus cases and geopolitical tensions drove investors to safer assets.
The BSE S&P Sensex closed 171 points or 0.45 per cent lower at 38,194 while the Nifty 50 was down by 39 points or 0.35 per cent at 11,278.
Most sectoral indices at the National Stock Exchange were in the red with Nifty PSU bank slipping by 2.5 per cent, private bank by 1.7 per cent and financial service by 1.8 per cent. But Nifty pharma gained by 1.9 per cent and metal ticked up by 1.2 per cent.
Among stocks, State Bank of India was the top loser after dropping by 4 per cent to Rs 195.70 per share. Axis Bank slipped by 2.7 per cent, ICICI Bank by 2.2 per cent, Bajaj Finserv by 2.9 per cent and Bajaj Finance by 1.9 per cent.
AstraZeneca Pharma India's stock closed 3.2 per cent down to Rs 4,080 per unit after its parent company voluntarily paused a randomised clinical trial of a coronavirus vaccine after a volunteer developed an unexplained illness.
The other prominent losers were ONGC, GAIL and IndianOil Corporation.
However, Reliance Industries rose by 2.68 per cent to Rs 2,163.55 per share after announcing that Silver Lake will invest Rs 7,500 crore in Reliance Retail. The other which showed gains were Tata Steel, Cipla, Dr Reddy's, Grasim, JSW Steel and Hindalco.
Meanwhile, Asian shares fell after a rout of technology shares sank Wall Street for a third consecutive day.
Japan's Nikkei skidded by 1.04 per cent while Hong Kong's Hang Seng was down by 0.63 per cent. The Shanghai composite closed 1.86 per cent lower.
(ANI)
