Stock Market: Sensex Sheds 390 Points, Nifty Holds 17,000 Amid Volatility. Wipro Tanks 7 Per Cent

Stock update: Wipro was the top loser, shedding 7.03 per cent, followed by SBI, L&T, ICICI Bank, Asian Paints, Bajaj Finance, and HDFC twins on the Sensex platform

The BSE Midcap index was down 0.6 per cent and the Smallcap index shed 0.4 per cent.

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Sensex and Nifty, the two key equity benchmarks, on Thursday ended in the red following heavy selling in banking, finance, and capital goods stocks due to inflation and growth concerns. Traders said that a weak rupee and rising crude prices also impacted the market sentiment.

The BSE Sensex dived 390 points (0.68 per cent) to settle at 57,235. Likewise, the broader NSE Nifty fell 109 points (0.64 per cent) to end at 17,014.

On the 30-share Sensex platform, Wipro was the top loser, shedding 7.03 per cent, followed by SBI, L&T, ICICI Bank, Asian Paints, Bajaj Finance, and HDFC twins. On the flip side, HCL Tech, Sun Pharma, Dr Reddy's Reliance Industries, and Ultra Tech Cement were among the gainers, rising up to 3.19 per cent.

The broader markets also declined in tandem with the benchmark indices. The BSE Midcap index was down 0.6 per cent and the Smallcap index shed 0.4 per cent.

Sectorwise, BSE Bankex and Capital Goods were the major losers, down over a per cent each. Power and realty indices also shed a per cent each. However, the Healthcare and Metal indices managed to end with nominal gains.

Vinod Nair, Head of Research at Geojit Financial Services, "Retail inflation persisting above the desired levels has been a major cause of concern for the Indian economy. This, coupled with declining industrial production in August may not be taken well by the market because Indian economy is anticipated to sustain its resilience. In this backdrop, the impending US inflation figures, which are forecasted to remain high, may cause volatility in the global market." In Asian markets, bourses in Tokyo, Shanghai, Hong Kong, and Seoul closed in the red.

In the previous session on Wednesday, the BSE Sensex climbed 478 points (0.84 per cent) to settle at 57,625. Likewise, the broader NSE Nifty reclaimed the 17,100 level by jumping 140.05 points (0.82 per cent) to close at 17,123.

However, stock exchanges in Europe were trading with gains in mid-session deals.

Meanwhile, the international oil benchmark Brent crude futures increased by 0.31 per cent to $92.74 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the Indian capital market on Wednesday as they sold shares worth Rs 542.36 crore, as per exchange data.

The rupee declined by 6 paise to close at 82.39 (provisional) against US dollar.