Despite a strong start on the back of some hectic buying in automobile stocks- thanks to buoyant sales data, the Indian stock market ended flat on Wednesday.
The decline was due to a disappointing economic report that showed the pace of growth in eight core sectors to have slowed to a 3-month low in March. Also, investors appeared reluctant to build up positions ahead of the Federal Reserve’s monetary policy, due later in the day.
The Sensex ended up 16.06 points or 0.05 percent at 35,176.42, well off the day’s high of 35,357.15. The Nifty 50 edged down by 21.30 points or 0.2 percent to 10,718.05.
Kotak Bank ended nearly 4 percent up. ITC gained about 2 percent. Asian Paints added 1.8 percent, while HDFC, HDFC Bank, Axis Bank and Reliance Industries gained 1 to 1.4 percent.
Larsen & Toubro opened on a firm note, but pared its gains and ended flat. The company has announced that it would sell its electrical and automation business to Schneider Electric for a cash consideration of Rs 140 billion. The divestment is part of L&T?s larger plan to streamline its operations by divesting from non-core assets.
Tata Steel declined 3.3 percent. Vedanta, SAIL, Hindalco, ICICI Bank, Hindustan Unilever, Sun Pharmaceutical Industries, State Bank of India, Yes Bank, IndusInd Bank, Hero Motocorp, Coal India and Mahindra & Mahindra also ended notbly lower.
According to the data released by the Commerce & Industry Ministry on Tuesday, the growth of eight core sectors slowed to 3-month low of 4.1% in March due to weak performance in as many as six sectors including coal, crude oil and natural gas.
Refinery products, steel and electricity sectors too registered slower growth in March, the data showed.
Markets across the globe are awaiting the Federal Reserve’s monetary policy, due later in the day. It is widely expected that the Fed will hold rates unchanged, but the focus is on what the central bank is to state with regard to outlook for rates.
by RTTNews Staff Writer
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