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Sensex Pares Some Losses After Plunging 380 Pts

The Indian stock market is notably lower after a weak start Wednesday morning with investors pressing sales at several counters from across various sectors.

The overnight tumble on Wall Street where a sell-off in technology shares hurt sentiment and triggered widespread selling in other sectors as well, and weak cues from European and Asian markets set up the stage for the bears this morning.

Rising tensions between India and China along the border at Ladakh, continued surge in coronavirus cases and news about AstraZeneca pausing a clinical trial of its coronavirus vaccine are weighing on sentiment.

Metal, oil, FMCG, banking and realty stocks are among the most prominent losers.

The benchmark BSE Sensex, which plunged more than 380 points to 37,980.69, is currently down 265.75 points or 0.69% at 38,099.60.

The National Stock Exchange's Nifty is down 84.05 points or 0.74% at 11,233.30, after falling to a low of 11,207.50.

On Tuesday, the Sensex slid 51.88 points or 0.14% to settle at 38,365.35, after having surged up nearly 330 points at one stage. The National Stock Exchange's Nifty closed lower by 37.70 points or 0.33% at 11,317.35.

ONGC is down by about 3.75%. State Bank of India is declining 3.2%, while Bharti Infratel, Coal India, GAIL, ITC, Bajaj Financial Services, Indian Oil Corporation, Tata Motors and Axis Bank are down 2 to 2.7%.

BPCL, Hindalco, UPL, Adani Ports, Kotak Bank and Grasim Industries are also notably lower, while Hero Motocorp, Wipro, HDFC Life, Asian Paints andTitan Industries are up in positive territory.

Reliance Industries is up by about 0.5%. The company announced today that Silver Lake will invest Rs 7,500 crore for a 1.75% stake in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries. This values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake had earlier this year invested about $1.35 billion in Jio Platforms.

IRCTC shares are down nearly 3% after the company said that the government is planning to sell about 15-20% stake in the company via offer for sale.

GIC India shares are down by about 4% on weak results. The company reported a massive net loss of Rs 557.47 crore for the quarter ended June 2020, after posting a net profit of Rs 108.60 crore in the year-ago quarter.

Power Grid Corporation Limited shares are down marginally. The Cabinet Committee on Economic Affairs has approved asset monetization of the company's subsidiaries through infrastructure investment trust. The move will help the company to raise about Rs 7,000 crore in the first lot.

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