Nifty extends losses for third day, falls 70 points

Overseas, Asian stocks ended lower and European shares were down in their early deals. The stock had also underperformed the market over the past one quarter, declining 4.35% as against the Sensex's 6.98% rise.

Tensions on the global front escalated after North Korea reportedly said that it was "carefully examining" a plan to strike the US Pacific territory of Guam with missiles.

At 0918 hours Sensex was trading at 31,917.97, down 96.22 points or 0.30%, while NSE Nifty was trading at 9,945.8, down 32.75 points or 0.33%.

Global market fell as geo-political tension between North Korea and United States continued to keep risk appetite under check. France's CAC, Germany's DAX and Britain's FTSE were down 0.8-1.7 percent at the time of writing this article.

The domestic markets on Wednesday opened in red after Securities and Exchange Board of India (SEBI) on Tuesday restricted 331 companies from trading. However, sources told CNBC-TV18, there could be some respite to certain firms within a week.

BSE Sensex was down 259.48 points at 32014.19 while NSE Nifty was down 78.85 points at 9978.55.

Sandeep Parekh, Founder, Finsec Law Advisors said the concept of shell company in itself could not be used to penalise entities in the absence of any other violation of laws, regulations or circulars.

Among specific stocks, shares of Mumbai-based developer HDIL declined over 13 per cent taking its losing streak to the fifth session in a row.

Analysts said they were advising investors to pare their positions in high beta stocks as there was a possibility of new list of such companies being released. While none of the companies mentioned in the circular belongs to large-cap category, experts said the latest order from the capital market regulator impacted the overall sentiment as it has raised concerns regarding the misuse of stock exchange platform for dubious goal.

Polaris Consulting & Services lost 4.4 percent after the company reported a near 24 percent decline in its net profit in June quarter.

Aurobindo Pharma lost almost 6 percent ahead of earnings due later today.

Index laggards included NTPC, Dr Reddy's, M&M, Tata Motors, Bharti Airtel, Lupin, Cipla, Hindustan Unilever, Asian Paints, Axis Bank, Hero MotoCorp, HDFC Ltd, Reliance Industries, ITC, ONGC and Sun Pharma, falling up to 1.64 per cent.

  • Rogelio Becker