Domestic stock markets gave up early gains in a choppy session on Wednesday. The S&P BSE Sensex index climbed to as high as 38,980.60 in morning deals, and fell 215.51 points from that level to hit 38,765.09 on the downside. The broader NSE Nifty 50 benchmark fell to as low as 11,472.25, having gained to as high as 11,517.55 earlier compared to its previous close of 11,461.85. Gains in automobile and banking stocks were countered by losses in consumer goods, pharmaceutical and IT shares.
At 10:33 am, the Sensex traded 5.64 points – or 0.01 per cent – lower at 38,838.24, while the Nifty was up 9.70 points – or 0.08 per cent – at 11,481.95.
Auto stocks rose after Finance Minister Nirmala Sitharaman said lowering taxes on some types of vehicles was a “good suggestion”. The Nifty Auto index – comprising shares in 15 manufacturers of automobiles and auto ancillaries – was up 1.44 per cent at the time, having risen as much as 1.57 per cent earlier on Wednesday.
Speaking to industry executives at a virtual briefing, the finance minister said two-wheelers merited a rate revision, in response to a question about cutting goods and services tax rates on those vehicles, the Confederation of Indian Industry said on Tuesday.
Analysts awaited the release of official data on the country’s gross domestic product due next week for more clarity on the damage caused by the coronavirus pandemic.
