The Sensex ended a volatile session lower by 70 points, at 16,283, after trading between 16,411 and 16,144. On the NSE, Nifty ended 20 points lower at 4,826, after slipping below 4,800 in early trade. Gaurang Shah, AVP of Geojit BNP Paribas Financial Services, sees the market nearing its bottom. “They are likely to go only 2-3 per cent lower from these levels. At 5,000-5,100, markets were appearing a bit stretched. Infrastructure, capital goods, engineering and banking counters are looking good at this stage,” he added.
Banking, auto and power stocks led the decline in today’s trade. The BSE bankex fell 1.5 per cent and the BSE auto index was down 0.9 per cent. Among the banking stocks, IDBI, ICICI Bank and HDFC Bank fell more than 3 per cent each.
In the auto space, Apollo Tyres fell 5.3 per cent to Rs 47. Maruti Suzuki also shed 4.5 per cent to close at Rs 1,415.
The BSE power index was also down 0.8 per cent. GVK Power & Infra, NHPC and Reliance Infra lost over 2 per cent each.
Among the Sensex stocks, Maruti Suzuki was the biggest loser. Tata Steel, HDFC, ICICI Bank and HDFC Bank were the other main losers, down more than 3 per cent each.
Bharti Airtel and Wirp were the major gainers in the group. The stocks ended up over 3 per cent each.
Global stock markets dropped on Wednesday as more signs American consumers were struggling undermined hopes for a stronger turnaround in the world's largest economy.
Major Asian markets fell by about 1.5 per cent or more, with European shares shedding about 1 per cent in early trade.
The losses followed another choppy session on Wall Street, where an unexpected drop in consumer confidence gave investors few reasons to venture further into a market that's run massively higher in the last eight months.
The news was the latest evidence that US shoppers, their budgets tightened by the economic crisis and rising unemployment, aren't likely to return to their spendthrift ways anytime soon. It was all the more unsettling in Asia, coming ahead of the vital Christmas holiday season, when major export companies rely heavily on Americans to increase their spending on electronics, toys and other goods.(With inputs from agencies)