Sensex Turns Negative On No-Trust Motion, Nifty Below 11,000

The domestic stock market turned negative after a no-trust motion was moved against PM Narendra Modi's government in the Parliament on Wednesday. At 1:37 pm, The S&P BSE Sensex traded at 36,428.1 with a loss of 91.81 points or 0.25 per cent while the broader Nifty50 was lost the crucial 11,000 mark to trade at 10,995.65, down 12.40 points or 0.11 per cent. Twenty eight out of 50 Nifty stocks traded with losses. Tata Steel, Hindalco, UPL, Tata Motors and Hindustan Unilever were the top laggards in the Nifty50 benchmark, as the stocks lost 4.66-2.50 per cent.

All sectoral indices, barring financial services and IT, traded in the red.

Earlier in the day, Sensex had opened at a fresh record high while the Nifty50 firm above the 11,050 mark.

In early morning trade, PSU banks led the charge on reports that the government is likely to infuse up to Rs 10,000 crore in select lenders. However, later on as the markets stabilised, 11 PSU banking stocks of the Nifty PSU Bank index traded in the red. The Nifty Bank index, was however, still 0.23 per cent higher as five among 12 stocks gained.

A strong closing of Wall Street added to the gains.

Technical analysis suggested a clear uptrend in markets. "The lower time frame suggests a clear uptrend and bulls are back in action. We may expect key benchmark index Nifty to trade in a consolidation of 11,200 on higher side and 10,900 on lower side," said Dyaneshwar Padwal, AVP, Technical Analysis, KIFS TradeCapital.

In overnight trade, Wall Street stocks rose, with the Dow Jones Industrial Average posting its fourth consecutive session of gains after Federal Reserve Chairman Jerome Powell expressed an optimistic US economic view and solid earnings bolstered the outlook for a robust reporting period. The Dow Jones Industrial Average rose 55.53 points, or 0.22 per cent, to end at 25,119.89, the S&P 500 gained 11.12 points, or 0.40 per cent, to 2,809.55 and the Nasdaq Composite added 49.40 points, or 0.63 per cent, to 7,855.12.

Asian shares also followed Wall Street higher. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent and Shanghai blue chips 0.6 per cent. (With Reuters Inputs)