Equities give up all gains, Nifty below 10,800

Equity benchmarks closed the session with cuts of 0.3 percent on Wednesday, even as global cues remained positive. Selling in the last hour weighed on frontline indices.

The Sensex managed to end just above 36,000 and the Nifty closed below 10,800.

Selling was visible across sectors, with maximum pain seen around automobiles, banks, infrastructure and metals, among others. The Nifty IT index is the sole gainer.

In the broader markets, the Nifty Midcap index fell over one-third of a percent

Shares of Reliance Industries, L&T, and State Bank of India (SBI) contributed more than 30 points to Nifty’s fall.

“Led by supportive global cues and better than expected inflation data, the Indian equity benchmark indices started the session on a positive note. However, stiff resistance was witnessed at higher levels, as the Nifty index slipped from an intra-day high of 10,892 and closed lower at 10,794 levels, down 0.4%,” Jayant Manglik, President, Religare Broking, said in a statement.

At the close of market hours, the Sensex was down 119.51 points or 0.33% at 36034.11, and the Nifty down 37.70 points or 0.35% at 10793.70. The market breadth was negative as 970 shares advanced, against a decline of 1537 shares, while 133 shares were unchanged.

Stocks in the News

Shares of Edelweiss recovered 11% as Bombay High Court dismissed Anil Ambani Group’s petition w.r.t pledged shares.

Jet Airways has ended a percent higher ahead of the Board Meeting tomorrow.

CG Power has tumbled 30 percent after Q3 results.

Bosch has ended 3 percent lower after Q3 earnings missed estimates.

Global Markets

European stocks were higher, amid optimism about US-China relations. Stoxx-600 was up around 0.4 percent during early morning deals.

Major stock markets in Asia closed higher amid positive sentiment on the U.S.-China trade front. The mainland Chinese markets were higher on the day. The Shenzhen component rose 2.012 percent to close at 8,171.21 and the Shenzhen composite gained 1.872 percent to finish its trading day at 1,389.68. The Shanghai composite recovered from earlier losses to close 1.84 percent higher at 2,721.07.

“We continue to maintain a cautious stance in the near term with lack of any major positive triggers and uncertain global cues. On domestic front, investors would focus on last leg of Q3FY19 earnings season and WPI data. Further, investors would keep an eye on the progress of trade talks between US-China, behaviour of crude oil prices and fluctuation in currency. We advise investors to focus on fundamentally sound companies with strong financials and healthy prospects,” Manglik further added.