Mumbai: Domestic woes weighed on investor sentiments as the Sensex closed with minor gain on Wednesday, despite signs of easing in trade tension between the US and China. The benchmark Sensex managed to gain 66.40 points, or 0.17 per cent, at 39,112.74, while the Nify finished on a flat note at 11,691.45.
“Despite global trade optimism, domestic market failed to hold the opening gains due to concern over weakening economic data, lack of liquidity and deficit in monsoon. The earnings growth is likely to be downgraded further given the deteriorating situation,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
“Seems that market will have to wait till the final Budget which could be the testimony of the new plan,” Nair added. Shares of Jet Airways extended further losses, declining over 18 per cent on Wednesday. It followed Tuesday’s session which marked the worst day in Jet’s trading history with a 41 per cent fall.
The State Bank of India (SBI)-led consortium of bankers has taken the grounded airline to the National Company Law Tribunal (NCLT) for resolution, which could force the banks to take huge haircuts on their exposures to Jet.
Deepak Jasani of HDFC Securitie said that Jain Irrigation closed 28 per cent lower after India Ratings cut its long term issuer rating to BBB with its outlook at ‘Watch Negative’. The downgrade reflects deterioration in the liquidity profile on account of delay in realisation of receivables from its micro-irrigation systems (MIS) segment, Jasani added. World stocks held near two-week highs on Wednesday as investors bet on a central bank stimulus, with expectations building that the Federal Reserve may go for a rate cut. (IANS)