Mumbai: The sell-off in heavyweights SBI, ICICI Bank, Reliance Industries, Bharti and BHEL compelled the Indian equities to close moderately down after a very volatile session. A recovery attempt - first in the opening trade and again when Europe opened - saw the Sensex rally 150 points intra-day, but succumbed to profit booking later on. The 30-share BSE Sensex fell 72.45 points or 0.46 per cent, to close at 15,792.41 despite positive European cues. The 50-share NSE Nifty plunged 20.85 points or 0.44 per cent to end at 4,751.30, which is the fourth consecutive the fall for the market.
Financials dented the market for second straight session, especially SBI. Daniel Tabbush, head-regional banks research of CLSA said many negatives are already priced in for SBI, but he still sees some downside for the stock. He sees more downside risk in private banks as well. "High valuations are a key risk for Indian private banks," he said in an interview to CNBC-TV18.
The BSE Bankex crashed 2.5 per cent. SBI plunged 4 per cent in Wednesday's trade as well. ICICI Bank and HDFC Bank were down 2.7 per cent while HDFC gained 1 per cent.
Heavyweight Bharti Airtel declined 0.8 per cent post Telecom secretary said it would issue notices to 5 telecom companies (including Bharti Airtel, Reliance Comm, Idea Cellular) for revenue misreporting. Idea Cellular down 2.7 per cent and Tata Tele fell 1 per cent while Reliance Communications gained 1.8 per cent.
Reliance Industries and BHEL too added pressure on the market, falling 0.7 per cent and 2.4 per cent, respectively.
From the metal space, JSPL and Hindalco slipped 2.55 per cent and 3.6 per cent, respectively. Sterlite Industries was down 0.8 per cent while Tata Steel gained 0.9 per cent.
Among others, Wipro, Maruti Suzuki and HUL plummeted 1.5-2 per cent.
However, about 0.5-1.5 per cent upmove in ITC, HDFC, Infosys and L&T has capped the downside of the market. Jaiprakash Associates was the biggest gainer - shot up nearly 4 per cent.
Broader indices like BSE Midcap and Smallcap declined close to 1 per cent. About 1115 shares advanced as against 1669 shares declined on BSE.
Indian markets will be shut on Thursday for festival of Dussehra.
On the global front, European markets saw technical pullback on Wednesday after downtrend in last few sessions. France's CAC rallied 2.8 per cent; Germany's DAX gained 2 per cent and Britain's FTSE moved up 1.5 per cent.
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