Markets Face Late Slump to Erase Gains as Sensex Loses 200 Points

Indian equity benchmarks opened higher, extending gains for the second consecutive trading session.

Image used for representational purpose. 

(Photo: Reuters)

Equity markets reversed its gains in the late hours of trading on Wednesday, 15 May, with both Sensex and Nifty finishing more than half a percent in the red.

30-share BSE Sensex lost 203.65 points to close at 37,114.88 while the broader 50-share NSE Nifty finished at 11,157, down 65.05 points.

The markets opened on a positive note on Wednesday, with Sensex surging as much as 230 points in intra-day trading.

However, some uncertainties led to the downturn in the bourses. Analysts suggest the markets saw an escalation in US’ tension with Iran, after its state department ordered all non-emergency staff to leave its embassy in the neighbouring country Iraq’s capital Baghdad.

Moreover, the political uncertainty is also encouraging investors to book profits, analysts said.

At Wednesday’s closing bell, with the exception of Nifty IT, all sectoral sub-indices were in the red. Nifty Metal and Nifty PSU Bank lost the most at 2.10 percent and 1.80 percent.

Yes Bank, Tata Motors and Zee Entertainment stocks were the heaviest losers during the day’s trade.