Indian equities trended lower on Wednesday, October 19 after a rally the day before. Investors opted to take profit, with banking names standing out among the worst performers.
Investors still await a number of corporate earnings reports due out later this week, as well as the government’s decision on new VAT rates for various industries.
By the close, the Nifty 50 dipped 0.22% to 8,659.10 and the BSE Sensex was down 0.24% at 27,984.37.
By 10:54 GMT, the USD/INR pair fell 0.13% to 66.655, while EUR/INR ticked up 0.001% to 73.2700. The 10-year Indian government bond yield widened to 6.819%.
On the downside, ICICI Bank and State Bank of India dropped 1.96% and 0.58%, respectively. Carmakers Tata Motors, Mahindra and Mahindra and Hero Motor retreated 0.77%, 0.41% and 1.39%, respectively.
Logistics companies outperformed the broader market, with Gati, Allcargo Logistics and VRL Logistics surging 4.32%, 2.51% and 3.13%, respectively.
In other regional news, Indian shipbuilder ABG Shipyard rocketed 19.37% on reports that the company is in talks with a Russian company regarding the sale of its controlling stake.
From a technical standpoint, the BSE Sensex, has been trading within a downward band, approached the lower end, with slow stochastic lines heading north. If a breakout occurs, the benchmark may push towards the 28,500 resistance level.