Mumbai: Benchmark indices gave up a strong opening and ended lower on Wednesday, with banks and financials dragging the market down even as technology stocks rallied.
The Sensex fell 143 points to close at 73,710, and the Nifty declined 78 points to 22,811. The pain was sharper in the broader market: the midcap index dropped 922 points, or nearly 2 per cent, to 57,566, and the Nifty Bank index slipped 511 points to 54,977. Declines outnumbered advances roughly six to one.
Information technology was the lone bright spot. The Nifty IT index rose 2.21 per cent to 32,211, with Infosys, HCL Technologies, Tech Mahindra and TCS gaining 2 to 3 per cent. Wipro and Mphasis also advanced.
Bajaj Finance was the top Nifty loser, falling over 3 per cent amid concerns over its margin outlook. Auto counters came under pressure after October vehicle registration data, with most stocks down 2 to 3 per cent. ABB fell 6 per cent, SRF 5 per cent, and gold-financing stocks such as Manappuram Finance also sold off.
The rupee opened stronger at 94.78 against the dollar. Brent crude stayed near $110 a barrel on worries over Red Sea shipping and Middle East supply, a headwind for an economy that imports most of its energy.
Indian markets were closed on Tuesday for Dussehra.
India VIX, a gauge of expected volatility, jumped about 8 per cent. All BSE sectoral indices except IT ended in the red, with capital goods, banks and auto among the biggest drags. The market capitalisation of BSE-listed firms fell to about ₹460 lakh crore in the afternoon session.
Exchange data showed foreign institutional investors sold equities worth ₹1,148.64 crore on Monday, while domestic institutions bought shares worth ₹3,201.19 crore.