The Bombay Stock Exchange (BSE) 30-share sensitive index closed with a loss of 63.97 points at 19856.24.
On the National Stock Exchange, the 50-share Nifty closed at 5873.85 with a loss of 18.60 points. After the Tuesday’s range bound session, the markets were seen starting on flat note on Wednesday but selling pressure in the index majors dragged Nifty to crucial support zone of 5800.
“It was seen as reaction to the government stance announced on Tuesday to avoid any further steep rise in fuel prices. In import bill, the import of petroleum products holds a sizable portion and this step would further deepen the fiscal deficit as the government partially reimburses the public sector oil marketing companies (OMCs) for selling fuel on discounted rate,” said Jayant Manglik - President Retail Distribution, Religare Securities Ltd.
In the later half, however, the situation improved when the rupee recovered quite strongly against the dollar and the equity markets pared losses considerably. “It closed down by less than half a percent with mixed move on sectoral front.”
