Indian stock indexes ended their two-day winning streak on Wednesday, dragged down by losses in banking and financial services stocks such as Axis Bank, Bajaj Finance, Bajaj Finserv, HDFC Bank and Kotak Mahindra Bank. For most of the day, Sensex and Nifty traded in a narrow range, but late selling pressure in the bank stocks gauge wiped out all of the intraday gains, analysts said. The Sensex fell 474 points from the day’s high and the Nifty 50 Index hit an intraday low of 18,201 after hitting a high of 18,342.
The Sensex lost 207 points to close at 61,143 and the Nifty 50 Index lost 57 points to close at 18,211.
“The market has seen a small correction after an unsuccessful attempt to hold the highest levels of the Nifty 50 Index above 18,300. Our research suggests that 18,200 will be a significant support level for the market. market is able to maintain the level of 18,200, we can witness a positive dynamic in the market which may lead to higher levels near 18,600 ”, Vijay Dhanotiya, head of technical research at CapitalVia Global Research.
Eight of the 15 sector indicators compiled by the National Stock Exchange ended lower, led by the 2.4% drop in the Nifty Media index. The Nifty Metal, Private Bank, Bank and Financial Services indices also fell between 1% and 1.6%.
On the other hand, shares of PSU Bank, information technology, healthcare and pharmacy have sparked buying interest.
Mid and small cap stocks closed flat, with the Nifty Midcap 100 and Nifty Smallcap 100 indices barely changing.
Axis Bank was Nifty’s biggest loser, as the stock fell 6.5% to close at Rs 787.35 after releasing its September quarter results. Bajaj Finance, ONGC, Tata Motors, Hindalco, IndusInd Bank, Hindustan Unilever, JSW Steel, NTPC, Reliance Industries, Tata Steel and Kotak Mahindra Bank also fell between 1.4 and 5%.
On the other hand, Asian Paints, UPL, Divi’s Labs, SBI Life, Cipla, Infosys, UltraTech Cement, Sun Pharma and State Bank of India were among the winners.
The overall breadth of the market was positive as 1,780 stocks ended higher while 1,466 closed lower on BSE.