Domestic equity indices corrected on Wednesday as mixed global cues triggered profit selling. The Nifty ended near the 15,200 mark. PSU banks were in demand while pharma and IT shares witnessed selling pressure.

The S&P BSE Sensex, tumbled 400.34 points or 0.77% at 51,703.83. The Nifty 50 index lost 104.55 points or 0.68% at 15,208.90.

HDFC Bank (down 2.48%), HDFC (down 1.83%), Kotak Mahindra Bank (down 1.61%), TCS (down 1.15%) and Infosys (down 0.63%) were major drags.

The broader market bucked the trend. The BSE Mid-Cap index rose 0.04% and the BSE Small-Cap index gained 0.53%.

The market breadth was positive. On the BSE, 1513 shares rose and 1448 shares fell. A total of 146 shares were unchanged.

COVID-19:

Total COVID-19 confirmed cases worldwide stood at 10,95,13,903 with 24,19,353 deaths. India reported 1,36,549 active cases of COVID-19 infection and 1,55,913 deaths while 1,06,44,858 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

Ratings agency S&P Global Ratings on Tuesday said that India is on track to recover from a pandemic-led economic contraction by next year. India could grow 10% in fiscal 2022, the ratings agency predicted in a report. India's fiscal year begins on 1 April 2021 and ends on March 2022 in the following year.

“The Indian economy is on track to recover in fiscal 2022,” the report said. “Consistently good agriculture performance, a flattening of the COVID-19 infection curve, and a pickup in government spending are all supporting the economy.” The speed with which the Indian economy recovers from the coronavirus crisis will have "important implications" for the country's sovereign credit rating, according to S&P. "This includes the sustainability of the government's strained fiscal position," the report added.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.023% as compared with 6.022% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.7450, compared with its close of 72.69 during the previous trading session.

In the commodities market, Brent crude for April 2021 settlement rose 64 cents at $63.99 a barrel.

Foreign Markets:

European markets fell across the board while Asian stocks ended mixed on Wednesday, following an overnight dip for the S&P 500 stateside as investors grew concerned over rising bond yields. Markets in mainland China remain closed on Wednesday for the Lunar New Year holidays.

Japan's exports rose 6.4% in January compared with a year earlier, according to trade statistics released Wednesday by the country's Ministry of Finance.

On Wall Street, the Dow hit an all-time high on Tuesday, while the S&P 500 and the Nasdaq retreated slightly from record levels, as investors bet on more fiscal aid to lift the world's biggest economy from a coronavirus-driven slump.

U.S. President Joe Biden was traveling to Wisconsin on Tuesday to press his case for a $1.9 trillion pandemic relief bill in the political battleground state that helped secure his victory in last year's presidential election.

Buzzing Indian Segment:

The Nifty PSU Bank index jumped 5.86% to 2,450.90. The index has surged 10.39% in four consecutive sessions.

Bank of India (up 19.97%), Maharashtra Bank (up 19.95%), Indian Overseas Bank (IOB) (up 19.85%), Central Bank of India (up 19.76%), Union Bank of India (up 10.55%), Indian Bank (up 9.97%), UCO Bank (up 7.98%), Bank of Baroda (up 5.58%), Punjab National Bank (up 4.68%), J&K Bank (up 4.51%), State Bank of India (up 2.75%) and Canara Bank (up 1.91%) surged.

Stocks in Spotlight:

Nestle India tumbled 2.80%. The FMCG major's net profit rose 2.3% to Rs 483.31 crore on 9.16% increase in net sales to Rs 3,417.52 crore in Q4 December 2020 over Q4 December 2019. Profit before tax in the fourth quarter stood at Rs 670.17 crore, up by 9.1% from Rs 614.10 crore in the same period last year. Total sales and domestic sales for the quarter increased by 9.2% and 10.1% respectively. Domestic sales growth is broad based largely driven by volume & mix. Demand in out of home channel further improved in the quarter but continues to be impacted by COVID. Export sales were lower by 7.7% due to lower coffee exports. The company's board of directors have recommended a final dividend of Rs 65 per equity share.

GMM Pfaudler gained 2.52%. The company on Wednesday announced that it has completed the transaction to acquire a majority stake of its parent, the Pfaudler Group, from the private equity firm Deutsche Beteiligungs AG Fund VI. With this acquisition, GMM became the ultimate holding company of the Pfaudler group, with the entire business of Pfaudler being consolidated into GMM. The combined revenue of the entity is estimated to be around Rs 2000 crore (USD 267 million).

TVS Srichakra fell 1.77%. The company signed a Memorandum of Understanding (MoU) with Tamil Nadu Government for a planned capex program. The MoU will facilitate company's investment program.

Rajesh Exports rose 0.71%. The company said it bagged a major export order worth Rs 1,352 crore for designer range of gold jewellery from Germany. The company will be executing the order from its own manufacturing facilities. The order is to be completed by 31 March 2021.

Lupin declined 2.99%. The drug major on Wednesday announced the launch of posaconazole delayed-release tablets after its alliance partner AET Pharma US Inc. received an approval for its ANDA from the US drug regulator. Posaconazole tablets are the generic equivalent of Noxafil delayed release tablets of Merck Sharp & Dohme Corp. The drug is indicated for prophylaxis of invasive Aspergillus and Candida infections in patients who are at high risk of developing these infections due to being severely immunocompromised, such as hematopoietic stem cell transplant (HSCT) recipients with graft-versus-host disease (GVHD) or those with hematologic malignancies with prolonged neutropenia from chemotherapy.

Adani Ports and Special Economic Zone (APSEZ) advanced 3% after the company completed the acquisition of 100% stake of Dighi Port (DPL) for Rs 705 crore. As per the terms & requirements of the Resolution Plan, the transfer of concession rights has also been approved by the Maharashtra Maritime Board (MMB) and APSEZ has settled the dues of financial creditors, MMB, and other admitted costs and claims.

Page Industries fell 3.63% after the company said its chief executive officer and executive director, Vedji Ticku, has resigned owing to personal commitments. The resignation will be effective from close of business hours on 31 May 2021.

KEC International advanced 0.97% after the company secured new orders of Rs 1,681 crore across its various businesses.