Sensex Plunges 377 Points, Nifty Ends At 10,672 As Markets Extend Losses To Second Day

Domestic stock markets extended losses to a second straight session as caution prevailed among investors ahead of key corporate earnings due next week. S&P BSE Sensex shed 377.81 points, or 1.05 per cent, to end at 35,513.71 while the NSE's broader Nifty50 settled 120.25 points, or 1.11 per cent lower at 10,672.25. Forty-two of its 50 stocks finished in the negative zone. Top laggards on the Nifty50 were Eicher Motors, Hindustan Petroleum, ONGC, Indiabulls Housing Finance and Indian Oil Corporation, closing with losses of between 4.22 per cent and 3.32 per cent. All the sectoral indices closed in the red. 

On the 30-share Sensex, losses were led by ONGC, Mahindra & Mahindra, Tata Steel, Vedanta and HDFC.

Shares of state-run Dena Bank and Vijaya Bank tumbled after the Cabinet approved their merger with Bank of Baroda.

Eicher Motors fell for the second day after the automaker reported its sales in December.

Trading mood was subdued after reports said the government was contemplating direct transfers worth Rs 4,000 an acre per season for farmers, among other incentives, which will likely have a substantial financial implication on the exchequer, reported news agency Press Trust of India.

Analysts expect weakness in the domestic markets to continue until corporate earnings due next week.

"The negative global cues and macro data will lead Indian market to see the southern journey for some trading sessions," said Ritesh Ashar, chief strategy officer, KIFS Trade Capital.

GST collection dropped to Rs. 94,726 crore in December 2018, from Rs. 97,637 crore in the previous month. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, declined to 53.2 in December, below November's 54.0 reading.

The rupee slumped by 22 paise to 70.40 against the US dollar amid strengthening greenback and sustained foreign fund outflows.

"Asian markets were wobbly today post apple cutting it revenue guidance in part due to weaker sales in China leading to fears of overall global slowdown," said Viral Berawala, CIO, Essel Mutual Fund.

Apple Inc. lowered its revenue outlook, citing fewer-than-expected upgrades to new iPhones, weakness in China's economy and supply constraints to newer models of the Apple Watch, iPad Pro and AirPods.

Top software services exporters Tata Consultancy Services and Infosys are set to report results for the December-quarter earnings next week.

Fund outflows triggered by institutional investors also put pressure on the markets.

The domestic markets have been affected by FIIs (foreign institutional investors) turning net sellers in the past few days thereby accentuating selling pressure in a already shallow market, added Mr Berawala.

On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs. 621.06 crore on Wednesday, while domestic institutional investors (DIIs) were net sellers of equities to the tune of Rs. 226.18 crore, provisional data available with the NSE showed.

(With agency inputs)