After a largely choppy trade session for the better part of Wednesday the Sensex closed 336 points lower owing to the last hour selling in index heavyweight ITC, which missed estimates in its quarterly result.
The third quarter result of India's biggest cigarette maker was better than the analysts' estimates, according to Reuters Refinitiv Eikon data.
However, ITC stock traded 4.75 percent lower at Rs 276 on the National Stock Exchange
The FMCG major reported a 3.85 percent year-on-year (y-o-y) growth in its standalone net profit. The company said income from operations was Rs 12,267.65 crore, which was 15.79 percent higher than the income in the year-ago period. While earnings per share (EPS) stood at Rs 2.62 against Rs 2.54 in the corresponding quarter last year, total revenues from FMCG space was Rs 8,274.36 crore
Globally, market sentiments were weak over concerns of a slowing global economy and the ongoing US-China trade tension.
The Indian rupee, however, gained 17 paise to trade at 71.27 (around 3.30 p.m.,) against the US dollar, providing some support to the overall dismal sentiment. It closed at 71.27 per dollar on Tuesday.
The BSE Sensex closed 336.17 points down at 36,108.47, after touching a high of 36,521.47 and a low of 36,037.90.
The benchmark index opened higher on Wednesday, at 36,494.12 points, from its previous close of 36,444.64. The broader Nifty50 ended lower by 91.25 points or 0.84 per cent at 10,831.50.
Global markets reverse course
Metal stocks were back in favour on Wednesday after closing 2 per cent lower on Tuesday, while IT, FMCG and financials came under selling pressure.
Markets globally had reversed course after the International Monetary Fund (IMF) revised down its forecast for global growth.
Analysts said IMF now projects a 3.5 per cent growth rate worldwide for 2019 and 3.6 per cent for 2020 which is 0.2 and 0.1 percentage points below its last forecasts in October 2019, making it the second downturn revision in three months.
Investors were also cautious owing to reports that the US turned down an offer to hold preparatory trade talks with China. This was later denied by the US administration.
Stock-wise, Sun Phrama gained over 3 per cent, the most among the 30-stock Sensex, followed by Yes Bank, Tata Steel, Hindustan Uniliver and Bajaj Finance.
Power Grid, Infosys, Mahindra and Mahindra and NTPC lost in the range of 1 to 3.50 per cent.
(With inputs from IANS)