Sensex sinks 400 points to end at 51,703; Nifty holds 15,200

Benchmark indices ended on a negative note for the second consecutive session as mixed global cues triggered profit booking. At close, the Sensex was down 400 points or 0.77% at 51,703, and the Nifty was down 104 points or 0.68% at 15,208.

Nestle, Bajaj Finserv, Asian Paints, HDFC Bank, and IndusInd Bank lost around 2.5% on the BSE. Whereas SBI, Power Grid, Reliance Industries, NTPC,  Bajaj Auto were top gainers.

On the sectoral front, Nifty PSU Bank rallied almost 6% and Nifty Media gained over 2%. While Nifty Pharma, FMCG, IT & Bank lost anywhere between 0.50-1.75%.

The market breadth was almost even. On the NSE, 922 shares rose and 977 shares fell. A total of 330 shares were unchanged.

According to Binod Modi Head-Strategy at Reliance Securities, domestic equities witnessed pullback amid weak global cues.

Rotational trading was seen, where a number of mid-cap and small-cap stocks witnessed sharp uptick as improving earnings visibility is attracting investors to this space especially in sectors which are considered to be beneficiary of higher capex, he added.

The broader market was positive as BSE Small-Cap index gained 0.53% & BSE Mid-Cap index was up 0.04%.

Economy

Ratings agency S&P Global Ratings on Tuesday said that India is on track to recover from a pandemic-led economic contraction by next year. India could grow 10% in fiscal 2022, the ratings agency predicted in a report. India’s fiscal year begins on 1 April 2021 and ends on March 2022 in the following year.

“The Indian economy is on track to recover in fiscal 2022,” the report said. “Consistently good agriculture performance, a flattening of the COVID-19 infection curve, and a pickup in government spending are all supporting the economy.” The speed with which the Indian economy recovers from the coronavirus crisis will have important implications for the country’s sovereign credit rating, according to S&P. This includes the sustainability of the government’s strained fiscal position, the report added.

Global markets

European stocks fell across the board while Asian stocks were mixed on Wednesday, following an overnight dip for the S&P 500 stateside as investors grew concerned over rising bond yields. Markets in mainland China remain closed on Wednesday for the Lunar New Year holidays.

Japan’s exports rose 6.4% in January compared with a year earlier, according to trade statistics released Wednesday by the country’s Ministry of Finance.

The global oil benchmark Brent crude was trading 0.58 per cent higher at USD 63.71 per barrel.