The broader NSE index has fallen about 0.9% as investors wait for corporate results
In a choppy trade, benchmark indices settled the day lower as investors stayed cautious ahead of the start of the March-quarter earnings season. Globally, the sentiment was also hit by the ongoing geopolitical concerns.
After hitting a record high of 9,273.90 points last week, the broader NSE index has fallen about 0.9% as investors wait for corporate results, with Infosys due tomorrow.
Street is also looking forward to a set of economic data - industrial production (IIP) for February and CPI inflation for March due later in the day.
Having sunk to its lowest level for at least five years in January, CPI is expected to have risen to 3.98% last month from February's 3.65%, according to the median forecast of 30 economists.
The S&P BSE Sensex settled the day at 29,643, down 145 points, while the broader Nifty50 ended at 9,203, down 17 points.
In the broader market, the S&P BSE Midcap and S&P BSE Smallcap fell 0.22% and 0.49% respectively.
"The market has covered some losses after a positive opening in Europe despite continuing geopolitical tension. Investors found their comfort zone diminished ahead of quarter results, IT stocks witnessed profit booking as the caution prevails due to recent US H1B visa norms and strong rupee which is likely to impact the revenue guidance.
Economic data- CPI inflation & IIP will hit the street today, the consensus is showing inflation to climb nearing to RBIs target of 4%," said Vinod Nair, Head of Research, Geojit Financial Services in a note.
The market breadth was negative as 1,095 shares advanced against a decline of 1,778 shares, while 149 shares were unchanged.
Buzzing stocks
Tata Steel, Wipro, Adani Ports and GAIL were the top losers on BSE Sensex, while Sun Pharma, Hero MotoCorp, Lupin and Bajaj Auto gained in the day.
After Supreme Court’s order on compensatory tariff, shares of Tata Power and Adani Power took a hit on Wednesday. Adani Power had an intraday fall of 11.5% and ended over 9% lower while Tata Power fell 1.7% at intra-day but later pared losses to settle flat.
Infosys was trading flat ahead of it's March quarter earnings, to be reported tomorrow. Other major IT stocks Wipro, TCS were trading 1.95% and 0.98% lower.
Nifty PSU Bank index, which had risen nearly 20% in 2017, was down 1.4% dragged by Syndicate Bank, Oriental Bank of Commerce, Allahabad Bank and Union Bank of India.
Meanwhile, Vedanta ended 2% higher and Cairn India rose 1.65% after Vedanta announced that it completed the buyout of Cairn India. At intra-day trade, Cairn India hit its 52-week high of Rs 313.05, up 3% while Vedanta advanced 3.7%.
Indiabulls Real Estate has soared 8% to Rs 98.60 in late noon deals, extending its two-session long gains of 3% on the BSE, after the company announced closure of share buyback offer on April 10, 2017. The stock ended 7.8% higher.
Global markets
Global markets have also been under pressure over North Korea and Syria tensions, further sapping sentiment.
A break in alarming political news lifted European stocks on Wednesday and cooled a safe-haven rally that saw the yen and gold at five-month highs and top-rated government bond yields at their lowest this year.
An early 0.5% rise for Europe's STOXX 600 share index put it on course for its best day of the month.
E-mini futures for the S&P 500 ESc1 also turned firmer having spent the Asian session in the red. Japan's Nikkei .N225 had slid just over 1% as a rising yen weighed on exporters' shares.
MSCI's broadest index of Asia-Pacific shares outside Japan saw a late rally though Shanghai closed down 0.4% as China reported a slight slowdown in producer price inflation.
Photograph: Shailesh Andrade/Reuters