Sensex dives 536 points, Nifty settles at 21,517; Nalco falls 7%; Adani stocks rally up to 12%

Domestic equity markets extended its weakness for the second straight session as benchmark indices settled sharply lower on Wednesday. Weakness in the global market weighed on the market sentiments, followed by sharp selloff in the metal and IT counters. Traders await Q3 earnings from India Inc, which kicks off next week.
 
For the day, BSE's Sensex tanked 535.88 points, or 0.75 per cent, to settle at 71,356.60. NSE's Nifty50 plunged 148.45 points, or 0.69 per cent, to end the day at 21,517.35. Broader markets outperformed the headline peers as BSE midcap and smallcap indices posted mild gains. Fear gauge dropped more than 3 per cent to 14.10-mark.

Markets edged lower for the second consecutive session. Weak global cues combined with continued fall in the IT and banking majors pushed the index lower however buying in the select heavyweights capped the pace of decline as the session progressed said Ajit Mishra, SVP - Technical Research at Religare Broking

"It is a healthy correction so far despite the underperformance of two key sectors and participants should focus largely on buying opportunities on dips till Nifty holds 21,200 level. Defensive like pharma and FMCG are attracting noticeable interest on the expected lines while others are contributing on a rotational basis. Traders should align their positions accordingly," he said.

On a sectoral note, the Nifty IT index dropped more than 2.5 per cent, leading the laggards. The Nifty metal index also dropped over 1.8 per cent, while the Nifty financial services indices also fell about half a per cent. Among the gainers, the Nifty realty and PSU Bank indices gained over a per cent each, while the Nifty pharma, oil & gas and healthcare indices were other key gainers.

Adani Group stocks hogged the limelight at Dalal Street following the Supreme Court's Verdict. Adani Energy Solutions gained about 12 per cent, while Adani Total Gas surged about 10 per cent. Adani Green Energy rose 6 per cent, while Adani Power ended at an upper circuit of 5 per cent. Adani Wilmar advanced 4 per cent for the day.

In the Nifty50 pack, Hindalco and JSW Steel dropped more than 3 per cent each, while Tata Steel and LTIMindTree tumbled over 3 per cent each. Tech Mahindra, Wipro and Infosys were other laggards. Among the gainers, Bajaj Auto gained more than 4.5 per cent, while the Adani Enterprises rose about 2.5 per cent. Adani Ports, Cipla and ITC added about 1.5 per cent each.

The lack of fresh triggers and concerns over valuation influenced investors to stay sidelined. Weak global indicators, like contraction in China & Eurozone manufacturing data, added concerns about global economic recovery in 2024, said Vinod Nair, Head of Research at Geojit Financial Services.

"Importantly, the market was waiting for the FED minutes later today for rate insights. As a rebound in the US 10-year bond yield and an uptick in the dollar index indicate whether FED may not turn as dovish as expected," he added.

A total of 3,945 shares were traded on BSE on Wednesday, of which 2,194 settled with gains. 1,643 stocks ended the session with cuts while 108 shares remained unchanged. During the day, only two shares hit their upper circuit, whereas merely three shares tested the lower circuit levels for the day.

In the broader markets, S Chand and Company hit an upper circuit of 20 per cent, while Inox Green Energy Services surged up to 16 per cent. Sun Pharma Advanced Research Company gained 15 per cent, while Sobha Rallied about 11 per cent for the day. Among the laggards, National Aluminium tumbled about 7 per cent, while NCL India, DMART and 3M India fell over 4 per cent each.

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