Sensex extends losses for 3rd day in a row, ends 214 points down, Nifty settles at 8,171; Axis Bank falls over 7%

The BSE Sensex and Nifty extended losses for a third consecutive session as investors remained cautious ahead of the conclusion of the US Federal Reserve’s meeting later in the day and the expiry of monthly derivatives contracts back home on Thursday. Sensex closed 213.68 points down at 27,039.76. Nifty closed 61.70 points down at 8,171.

In the 50-share index, Cipla, Kotak Mahindra Bank, Tech Mahindra, Ambuja Cements and ONGC gained between 1.40 per cent and 2.55 per cent. On the other hand, Axis Bank, ICICI Bank, Adani Ports, IndusInd Bank and YES Bank slid between 3 per cent and 7.20 per cent.

The major losers for the day in the BSE sectoral indices were BSE Bankex and BSE Power index, which ended down around 2.53 per cent and 1.48 per cent, respectively. Buying were seen in BSE Consumer Durables index and BSE TECk index which closed 1.63 per cent and 0.37 per cent up at 11,777 and 6,201, respectively.

“Getting some clarity from the Fed on rates could give the markets some bounce,” G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm said.

Axis Bank share price fell as much as 8.50 per cent despite posting July-September profit in line with expectations on Tuesday, as investors reacted to a sale of loans to asset reconstruction companies at steep discounts.

Bharat Electronics, Bharat Forge, Crompton Greaves, Dishman Pharmaceuticals, Dr Reddy’s Labs and Emami are some of companies which may announce their earnings on Thursday.

Jewellary stocks too remained in jubilant mood after a report that India regained its top position from China as the biggest overall consumer of gold in the first nine months this year with a total consumption of 642 tonnes. Tribhovandas Bhimji Zaveri gained 2.94 per cent, Titan advanced 2.97 per cent and PC Jeweller surged by over 8 per cent.

On the global front, following the overnight weakness in the US markets, Asian markets too ended lower led by the Chinese market as investors’ awaited commentary from the Federal Reserve. The Japanese market though bucked the trend and despite paring gains, ended higher for the day on some good earnings and as yen weakened. The European markets though made a modestly positive start after Sweden’s Central bank keeping benchmark rate unchanged expanded its bond-purchase plan for a fourth time since February.