Sensex slips 223 pts, Nifty ends below 19,400; Delta Corp closes 23% lower

Indian market closed lower amid high volatility on Wednesday. Sensex declined 223.94 points to close at 65,393 and Nifty slipped 55.10 points to close at 19,384. 

Infosys, Tata Motors, Ultratech Cement, HDFC Bank and NTPC were the top Sensex losers falling up to 1.17 per cent. TCS stock fell 0.36 per cent to Rs 3260.20 ahead of the Q1 earnings to be announced today.  

Kotak Bank, Asian Paints, Sun Pharma, Nestle India and Titan were the top Sensex gainers, rising up to 0.62 per cent. 

Consumer durables, banking and IT shares were the top sectoral losers with their indices falling 131 points, 112 pts and 191 points on BSE. The BSE pharma index was the top gainer, rising 71 points to 26,286. 

Shrikant Chouhan, Head of Research (Retail), Kotak Securities said, "As the global economy remains under pressure, local markets are likely to witness bouts of profit-taking during such prolonged rallies. On daily charts, the index has formed a small bearish candle and has also formed a lower top formation on intraday charts.  As long as the index is trading below 19450 the weak sentiment is likely to continue. Below which, the market could slip till 19300-19250. On the flip side, above 19450, the sentiment could change and the market could retest the level of 19500. Further upside may lift the index till 19575.” 

Market breadth was mixed with 1745 stocks ending higher against 1713 stocks falling on BSE. 143 shares were unchanged. Market cap of BSE-listed firms fell to Rs 3.01 lakh crore today.  

Meanwhile, the rupee gained for the third straight session. It rose 19 paise to 82.22 (provisional) against the US dollar on Wednesday, as weakness in the American currency overseas and steady foreign fund inflows boosted investor sentiment. 

However, a surge in crude oil prices capped the gains in the local unit, forex traders said. 

On Tuesday, the rupee had closed at 82.41 against the dollar. 

Vinod Nair, Head of Research at Geojit Financial Services said, “The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings. Optimism about moderation in US inflation supported the broad index. Further, an uptick in domestic food inflation on the back of higher mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend.” 

Meanwhile, shares of gaming and casino firm Delta Corp ended 23% lower after the GST Council imposed a levy of 28 per cent GST on online gaming, horse racing, and casinos. Delta Corp stock closed 23.28% or Rs 57.45 lower at Rs 189.35 against the previous close of Rs 246.80 on BSE. Market cap of Delta Corp fell to Rs 5070 crore in the current session.   

On Tuesday, BSE Sensex gained 273.67 points, or 0.42 per cent, to end at 65,617.84, while NSE's Nifty50 gained 92.30 points, or 0.48 per cent, to close at 19,448.20 for the day. 

Also read: TCS Q1 results: profit rises 16.83% to Rs 11,074 crore

Also read: Nifty, Sensex trade flat: Reliance, SBI, ONGC among top gainers, HUL, Infosys top losers; Delta Corp, Paytm, other buzzing stocks on July 12, 2023