Sensex falls nearly 300 points, Nifty tests 18,550; Reliance, HDFC twins top drags

The Indian equity benchmarks edged lower on Wednesday dragged down by weakness in heavyweights like Reliance Industries, HDFC Bank, HDFC, State Bank of India, ICICI Bank, Axis Bank and ITC. The Sensex fell as much as 285 points and Nifty 50 index dropped as much as 82 points to hit an intraday low of 18,551.

Meanwhile, Asia's stock markets slid toward a second month of losses in a row on Wednesday, and even the glittering Nikkei paused, as weak Chinese factory activity fed growing doubts about the post-pandemic recovery in the world's second biggest economy. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1 per cent in early trade and is down 2.4 per cent in a month where hopes for robust Chinese rebound have run dry, news agency Reuters reported.

Back home, selling pressure was broad based as 10 of fifteen sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Metal index's over 1 per cent decline. Nifty PSU Bank, Oil & Gas, Bank, Financial Services and Private Bank shares were also facing selling pressure.

On the other hand, healthcare, pharma, consumer durables and IT shares were witnessing buying interest.

Broader markets were trading on a mixed note as Nifty Midcap 100 index fell 0.16 per cent while Nifty Smallcap 100 index was trading on a flat note.

Among the individual shares, Adani Ports fell 1 per cent after the company reported its March quarter earnings post market hours on Tuesday.

Billionaire Gautam Adani-backed Adani Ports and Special Economic Zone (APSEZ) on Tuesday reported net profit of Rs 1,141 crore for the quarter ended March 2023, marking an increase of 3 per cent from profit of Rs 1,112 crore during the same period last year.

Adani Ports' revenue from operations rose 40 per cent to Rs 5,797 crore in the fourth quarter of last financial year from Rs 4,140 crore during the same period a year ago.

Adani Enterprises was top Nifty loser, the stock fell 1.6 per cent to Rs 2,457. ONGC, Hindalco, HDFC, Reliance Industries, NTPC, JSW Steel, Bajaj Finserv, Axis Bank, HDFC Bank, Tata Steel, Coal India, ICICI Bank and Maruti Suzuki also fell between 0.6-1.6 per cent.

On the flipside, Sun Pharma, Tech Mahindra, HCL Tech, HDFC Life, Apollo Hospitals, Eicher Motors, Asian Paints, BPCL and Nestle India were among the gainers.

The overall market breadth was marginally positive as 1,576 shares were advancing while 1,318 were declining on the BSE.