RTTNews - Weak global cues, especially the sell-off in Chinese market on valuation concerns, reports about deceleration in India's merchandise exports for the tenth straight month and concerns on the monsoon front pulled down the Indian market sharply down on Wednesday after a recovery in the previous session.

According to early estimates by the commerce ministry, exports from India for July fell 26% year-over-year to $12.5 billion from $17 billion in the year-ago period.

After moving in a range of 15,097-14,684, the BSE Sensex finished at 14,810, down 226 points or 1.50% and the S&P CNX Nifty fell 65 points or 1.45% to 4,394.

On the BSE, the mid-cap index moved down 1.14% and the small-cap index shed a modest 0.52%. Decliners outnumbered gainers by 1486 to 1140 and 87 stocks closed unchanged. Sector-wise, oil/gas, metal, auto and power stocks bore the brunt of the selling, while FMCG, consumer durable and capital good stocks closed with modest losses.

Among the major losers, ACC plunged over 5%, Reliance Infrastructure, Reliance Communication and Grasim Industries tumbled more than 4% each, Tata Steel fel1 3.93% and Mahindra & Mahindra moved down 3.58%.

Reliance Industries, Hindalco, Jaiprakash Associates, SBI, Hero Honda Motors, Tata Motors, TCS, ONGC, NTPC, Bharti Airtel, Wipro, BHEL, Sterlite and Sun Pharma also ended deep in the red.

However, HDFC bucked the declining trend, rising 1.56% after its board approved raising Rs.4,000 crore from qualified institutional investors. HDFC Bank rose 0.44% and Larsen & Toubro edged up 0.22%.

State-run NALCO advanced 3.18%, while Hindustan Copper fell over 3% after mines minister B K Handique said that the government has no plans to divest stakes in these companies. NALCO reportedly said that it has not started production at the 2.1-million-tonne expanded production line in Orissa due to Maoist insurgency.

Maruti Suzuki shed its early gains and ended down a modest 0.12% on reports it expects a double digit growth over the next few months.

TCS ended down 2.11% despite signing a multi-year deal with Avaya Global Connect for internal operations management. PSL rose 2.58% on bagging a contract worth Rs. 210 crore from Gail India.

Moser Baer ended up 0.80% after it added two new products to its vast optical storage media product range. Megasoft hit the 20% upper circuit limit after its board approved the sale and transfer of its U.S.-based BlueAlly division to Trianz Inc, USA for $13-15 million.

Asian Paints informed that Berger International Ltd, Singapore, a subsidiary of Asian Paints (International) Ltd, has signed a conditional share purchase agreement for divestment of its entire equity shareholding in Berger International Sdn. Bhd., Malaysia. The stock ended down 3.09%.

Edserv Softsystems was locked at the 5% upper circuit limit after it signed a three-year MoU with Manonmaniam Sundaranar University to offer Diploma / PG Diploma courses in e-learning framework along with contact classes enabled by EdServ's EdClass product.

Panacea Biotec also hit the 5% upper circuit limit on bagging a three-year contract worth Rs.1,067 crore from UNICEF for supply of a vaccine. Sintex Industries edged up 0.40%, Apollo Tyres advanced 2.38% on the back of execution of block deals on the stock exchanges.

On the BSE, Reliance topped the combined value chart with a turnover of Rs 922 crore, followed by Tata Steel (Rs 611 crore), Suzlon (Rs 550 crore), DLF (Rs 504 crore) and Aban Offshore (493 crore).

IFCI topped the value chart with trades of 92 million shares, followed by Unitech (83 million), Suzlon (64 million), Ispat (37 million) and Mahindra Satyam (31 million).

Elsewhere, the other Asian markets mostly ended in the red, with China's Shanghai Composite index tumbling 4.3% on apprehensions about possible changes in Beijing's easy credit policy and a lack of market-supportive measures.

European stocks also retreated led by banks on concerns surrounding China and U.S. stock futures point towards a lower opening on Wall Street Wednesday morning amid lower commodity prices and worries about the pace of global economic recovery.

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