RTTNews - The Indian market which was in a recovery mode in early trading on Wednesday, tumbled dramatically in mid-session trading following a sharp fall in Chinese market. However, since then, the market cut most of its loss, aided by positive opening by the European markets and short covering ahead of the expiry of July series futures and options contracts on Thursday.

China's Shanghai Composite Index ended down 5.0% after falling nearly 8% in early trading amid disappointing Chinese corporate profits and falling commodity prices. Speculation about the government intervention to prevent another unsustainable boom and reports that China's banks might curtail lending, prompted heavy selling. Hong Kong's Hang Seng index was the second biggest loser with a 2.37% loss.

Back home, the BSE Sensex, which showed a modest gain in early trading, fell sharply to 14,888 in the afternoon before finishing at 15,173, down 158 points or 1.03% and the S&P CNX Nifty fell 51 points or 1.11% to 4,513.

On the BSE, the mid-cap index fell 0.98%, the broad-based BSE 500 index ended down 1.16% and the small-cap index shed 1.46%. Losers outnumbered gainers by 1555 to 1091, with 78 stocks closing unchanged. Sector-wise, realty, consumer durable, metal and FMCG stocks bore the brunt of the selling, while IT and oil/gas stocks bucked the declining trend

Among the top decliners, DLF plunged 6.58%, Tata Steel, Sterlite, Sun Pharma and Tata Motors tumbled around 5% each, Grasim fell 4.03%, Reliance Infrastructure declined 3.79%, Hindustan Unilever eased 3.23%, Reliance Communication lost 2.36% and Larsen & Toubro fell 2.13%.

On the other hand, TCS rallied 4.18%, Tata Power advanced 2.91%, Mahindra & Mahindra rose 2.31%, Hindalco Industries gained 1.28%, Reliance Industries added 0.84%, Wipro rose 0.58% and Maruti Suzuki edged up 0.55%.

Sun Pharma slumped 5.24% after its quarterly net profit plunged 67% year-over-year. Kingfisher Airlines rose 2.61% after it decided to raise Rs.500 crore by way of equity.

Corporation Bank ended down 0.81% despite reporting a 42% rise in its June-quarter net profit. Punjab National Bank advanced 3.45% after its net profit for the three months to June grew to Rs 832.05 crore from Rs 512.40 crore in the year-ago period. Indian Overseas Bank gave off 1.84% despite announcing an 18% rise in its quarterly net profit.

Lupin slipped 0.44% even as it posted a 25% year-over-year rise in its June-quarter consolidated net profit. Tata Steel and Sterlite Industries fell over 5% each after their earnings for the June quarter fell short of market expectations.

Hexaware Technologies added 4% after reporting better-than-expected quarterly earnings. RNRL rose 1.39% after its chairman Anil Ambani accused the oil ministry of taking the side of his elder sibling Mukesh Ambani in a long-running gas dispute with Reliance Industries.

Premier Explosives was locked at the 5% upper circuit limit after it set up a plant at Neyveli for manufacture of site mixed emulsion explosives. ITC fell 1.33% after it reported losses of around Rs.100 crore for the non-cigarette FMCG business for the sixth straight quarter.

Gujarat Gas surged up over 14% after its board declared a liberal 1: 1 bonus issue. Likewise, Jindal Steel & Power also rose 3.41% after its board approved issuing five bonus shares for every one share held

Ashapura Minechem plunged nearly 5% after it has been directed to pay damages of $24.16 million to London-based shipping firm IHX (UK). Aurobindo Pharma ended down 0.98% even as it received tentative approval for donepezil hydrochloride tablets in 5mg and 10 mg strengths from the U.S. Food & Drug Administration.

State Trading Corporation of India fell 3.24% despite reporting a 31% rise in its quarterly net profit. Mcleod Russel India slipped 0.22% even a its net profit jumped to Rs 31.18 crore for the quarter ended June from Rs 7.08 crore in the year-ago period. Monsanto India plummeted over 4% after its quarterly net profit tumbled 28% year-over-year.

Elsewhere, the markets across Asia-Pacific region, except Japan, ended in negative territory on profit taking and European stocks were trading in positive territory, unaffected by the sell-off in China and Hong Kong, while U.S. stocks are set to open lower on Wednesday following a pullback in commodity prices ahead of the release of the advance second quarter GDP report on Thursday.

Light sweet crude oil for September delivery fell to $65.87 a barrel in late Singapore trading from its previous close in New York at $67.23 on Tuesday.

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