After gaining over 1,900 points in the past four sessions, the benchmark Sensex closed at 34,868.98 points, dipping nearly 1.6 per cent on Wednesday. It declined close to 838 points from the day's high of 35,706.6 points. Both the BSE Midcap and Smallcap indexes ended a little lower by 1.1 per cent and 1.2 per cent, respectively. "Benchmark indices corrected sharply on June 24 after making a new near-term high in the morning session. Profit-taking, weak European markets and key technical retracement resistance resulted in the sell-off," said Deepak Jasani, Head of Retail Research, HDFC Securities.
Only six stocks managed to end in green. Asian Paints and ITC were the biggest gainers with 3.8 per cent and 3.2 per cent gains, respectively. Banking and financial services stocks suffered heavy losses as the top losers included Indusind Bank and ICICI Bank with over 7 per cent fall each.
All the sectoral indexes took a beating except for the FMCG index that rose nearly 0.3 per cent. The hardest hit were BSE Bankex, Telecom and Finance which declined 4.1 per cent, 3.1 per cent and 2.9 per cent, respectively. The realty index fell 2.7 per cent and power index was down 2.5 per cent. The healthcare and utilities indexes too put up a poor show declining over 2 per cent each at the end of the trade. However, consumer durables, information technology, auto and industrials restricted their losses to below 1 per cent.
Asian markets reversed after early gains from four-month highs and European markets fell at open as new/spike in coronavirus cases in Australia, New Zealand, China, South Korea, US (seven states) and Germany added a note of caution to global markets, Jasani said. Expect a tepid trend in the market in the near-term.