Domestic Stock markets on Wednesday fell as much as 1 per cent as cautious investors awaited the outcome on the Goods and Services Tax (GST) Bill in Parliament and investors booked profits in recent outperformers.
The 30-scrip Sensex resumed higher, but ended lower by 284.20 points, or 1.02 per cent, at 27,697.51 — its lowest since July 11. It had fallen 604.651 points on June 24. The index had lost 226.89 points in the previous three sessions. The 50-share NSE Nifty shed 78.05 points, or 0.91 per cent, to end well below the 8,600-mark at 8,544.85, after moving between 8,635.45 and 8,529.60. On the other hand, snapping its six-day winning run against the US currency, the rupee dropped by 26 paise to end at 66.99 on renewed dollar demand from banks and importers and the decline in stocks.
Investors started paring down their bets amid caution over passage of the long-stalled GST Bill in the Rajya Sabha —which cleared it later in the day. Real estate and FMCG stocks led the decline. The BSE mid-cap index declined 1.50 per cent and the small-cap 1.14 per cent.
According to analysts, the sentiment was also hit by weakness across global markets. Asian bourses fell the most in five weeks as a disappointing Japanese stimulus package and oil going below USD 40 a barrel renewed concerns that the global economic recovery still needs more legs to stand on. Benchmark indices in Japan, Hong Kong and Singapore ended lower by up to 1.88 per cent.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services, said, “the market slipped due to weak global cues coupled with investors’ sentiment on the long pending GST bill in the upper house. The market is floating on a premium valuation and the risk reward is low so that investors are on the verge of profit booking. …”
“Nifty slipped lower and lost nearly a per cent after two days of consolidation, tracking cautiousness ahead of voting on GST bill. Participants were in the profit booking mood from the beginning which intensified in the later half. Discussion on the GST bill was on in Parliament when the markets closed so impact of its actual outcome would reflect on Thursday in early trades,” said Jayant Manglik, president, Religare Securities.