On Wednesday, the domestic bourses witnessed a lackluster session as the benchmark indices struggled below the baseline for most of the day. The market opened the session in an upbeat mood on the back of strength across Asia due to strong upbeat headlines from Elpida Memory Inc. and Japan's Shinsei Bank Ltd. The former plans to start mass production of a new memory chip while the latter raised its profit forecast. But the rally did not last long as selling pressure emerged at higher levels and the indices were seen dipping into the negative terrain. Sterlite Industries, carrying a 1.56% weightage on the benchmark Sensex played the major spoilsport as the stock declined by 8.50% after news came that the Madras High Court on Tuesday has ordered immediate closure of its copper smelting plant in Tuticorin. In the sectorial front, the Metal space was hammered the most declining by nearly 2%, due to the negative news in sector heavyweight Sterlite Industries. FMCG, PSU and Realty sectors also faced hefty selling pressure as they lost by 1.42%, 0.92% and 0.89% respectively. Both the Nifty and Sensex pared all of their morning gains and closed below the neutral zone. The NSE Nifty closed below the 6,000 mark, while the BSE Sensex ended below the 20,000 level.
The BSE Sensex closed down by 148.52 points or (0.74%) at 19,956.34 and NSE Nifty ended lower by 38.20 points or (0.63%) at 5,991.30. BSE Midcap closed with a loss of 54.45 points or (0.67%) at 8,103.92 while BSE Smallcap closed lower by 49.31 points or (0.48%) at 10,234.72. The BSE Sensex touched intraday high of 20,234.05 and intraday low of 19,923.11.
On Wednesday, the US market closed on a negative note following the weakness in the financial sector, which was largely the result of weakness in bank stocks. The broader market followed the financial sector that completely reversed a 1% loss in the going only to give up the move and settled with a loss of 0.8%. The financial stocks faltered undermined action in Europe, where Germany's DAX declined 0.5%, France's CAC dropped 0.7%, and Britain's FTSE settled lower by 0.2%. While the energy stocks registered relatively handsome gains. The sector surged 0.7% and 35 of the 39 sector scrips advanced. BP Plc (40.00, +0.71) remained the better performers in the sector, despite contradicting reports regar