Sensex closes down 318 points, Nifty 1% lower on worries over Trump’s policies

A road sign is seen next to Bombay Stock Exchange (BSE) building in Mumbai August 22, 2013. The Indian rupee fell past 65 to the dollar to a record low on Thursday, after Federal Reserve minutes hinted that the U.S. was on course to begin tapering stimulus as early as next month and as foreign investors become sellers of Indian stocks. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS)

Sensex dropped for a third straight session on Wednesday as banking and automobile shares fell, while regional markets were trading lower tracking overnight losses on Wall Street on doubts over US President Donald Trump’s economic policies. Asian stocks fell as doubts on Donald Trump’s economic growth agenda prompted investors to dump risky assets in search of safe havens such as government bonds. Wall Street fell sharply on Tuesday with the S&P 500 and Dow Jones Industrial Average losing over 1 percent in their worst one-day performances since before Trump’s election victory in November. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3%.

“The news from the US was the trigger today, but we were expecting corrective and sideways movement as the market was already in an overbought zone. Nifty is consolidating. Midcap stocks have done good run-up and some profit-booking cannot be ruled out,” said Vaishali ​Parekh, research analyst at Prabhudas Lilladher Pvt Ltd. “Stocks in the metal and banking sectors had run up to a great extent and these sectors are feeling the pressure now,” added Parekh.

On the Nifty 50, financial stocks contributed most to the losses, led by index heavyweight ICICI Bank which was down 1.6%. The Nifty Finance index declined for a fourth consecutive session. Auto stocks also lost traction with Mahindra & Mahindra Ltd and Tata Motors falling 2% and 1.4%, respectively, to pull down the NSE index. Telecom services provider Bharti Airtel was among the top losers on both the NSE and BSE indices, slipping around 3%. Market rumours that the company is planning to hike capex to 300 billion rupees in FY18 to take on the newly-formed Idea-Vodafone combine may be the reason behind the movement, said an analyst covering the stock, who did not wish to be named.

Only four stocks gained on the Nifty index with Axis Bank up 1.58%, leading the pack.

3.30pm: BSE Sensex closed lower by 318 points, or 1.08%, to 29,168, while the Nifty 50 fell 91 points, or 1%, to 9,030.

2.40pm: BSE Sensex trades lower by 300 points, or 1%, to 29,185, while the Nifty 50 rises 86 points, or 0.95%, to 9,035. Bharti Airtel shares fall 2.83% to trade at Rs339.70.

2.01pm: BSE Sensex trades lower by 218 points, or 0.74%, to 29,267, while the Nifty 50 falls 64 points, or 0.70%, to 9,057.

12.34pm: BSE Sensex trades lower by 224 points, or 0.76%, to 29,262, while the Nifty 50 falls 66 points, or 0.72%, to 9,055.

11.55am: Shares of IT services firm Subex Ltd jumped over 8% ahead of the company’s board meet on Friday to consider raising funds through issuance of equity shares on preferential basis. The stock gained 7.77% to Rs11.78 on BSE. At NSE, shares of the company soared 8.25% to Rs 11.80. “The meeting of the board of directors of the company will be held on Friday at Bangalore, inter alia, to consider and approve the raising of funds by way of issue of equity shares on preferential basis for the company,” Subex said in a BSE filing. It did not provide further details.

11.40am: Auto stocks fell. Tata Motors Ltd shares fall 1.7%, Mahindra & Mahindra Ltd shares fall 1.7%, Maruti Suzuki India Ltd shares fall 1.5%, Bajaj Auto Ltd shares fall 1.2%, Hero MotoCorp Ltd shares fall 1.2%.

11.10am: BSE Sensex trades lower by 244 points, or 0.83%, to 29,242, while the Nifty 50 falls 80 points, or 0.88%, to 9,041.

11.00am: NLC India Ltd shares rise 4.4% to Rs115.85. The stock gained for the fifth consecutive sessions and rose over 22.3% in this period. So far this year it gained over 52%. On 20 March, the company has announced Rs7.3 a share interim dividend for the financial year 2016-17.

10.40am: Banking stocks trade lower. Punjab National Bank stocks fell 2.2%, Union Bank of India fell 1.7%, Allahabad Bank fell 1.6%, ICICI Bank fell 1.6%, Canara Bank fell 1.6%, Federal Bank fell 1.5%, Indian Bank fell 1.5%, IndusInd Bank fell 1.4%, Syndicate Bank fell 1.3%, Yes Bank fell 1.3%.

10.20am: BSE Sensex trades lower by 238 points, or 0.81%, to 29,248, while the Nifty 50 falls 80 points, or 0.88%, to 9,041.

10.15am: Delta Corp Ltd shares rise 3.5% to Rs175.10 after the company said its board to meet today to consider fund raising plans. Motilal Oswal has rated the stock with buy rating and kept its target price to Rs 229 a share.

9.55am: Subex Ltd shares rise 4.3% to Rs11.40 after the company said its board will meet on 24 March to consider fund raising through issue of shares on preferential basis.

9.45am: Satin Creditcare Network Ltd shares fall 2% to Rs365. The stock fell for fifth consecutive sessions and fell 7.6% in this period. On March 20, ICRA has revised the outlook of its debentures to negative from stable.

9.34am: BSE Sensex trades lower by 183 points, or 0.62%, to 29,302, while the Nifty 50 falls 60 points, or 0.66%, to 9,061.

9.32am: Axis Bank Ltd rose 0.4% to Rs 489.80 after the company clarified to the exchanges that the reports of possible resignation of its chief executive officer is false and speculative.

9.30am: Wockhardt Ltd shares rise 2.7% to Rs 745 after huge block deal. Around 5.4 million shares or 4.9% stake of the company changed hands in single block deal, Bloomberg reported. However, details of buyers and sellers were not known.

9.25am: ICICI Bank Ltd shares fall 2% to Rs266.90. The stock fell for fifth consecutive sessions and declined 7% in this period. So far this year it rose 5%.

9.20am: Mawana Sugars Ltd shares rise 2.6% to Rs89.40 after the company said its board agreed to enter into one time settlement (OTS) with Punjab National Bank for resolution of non-performing asset debt.

9.15am: The rupee opened at 65.55 and touched a low of 65.57 a dollar. At 9.15am, the home currency was trading at 65.57, down 0.42% from its Monday’s close of 65.28.

9.10am: The 10-year bond yield was trading at 6.86%, compared to its Tuesday’s close of 6.887%. Bond yields and prices move in opposite directions.

9.00am: Asian currencies were trading lower. South Korean won was down 0.4%, Philippines peso 0.26%, Taiwan dollar 0.19%, Malaysian ringgit 0.14%, Singapore dollar 0.1% and Indonesian rupiah 0.1%. However, Japanese yen was up 0.1%.