1500526329_wkpRyY_sensex-l-pti4.jpg 
The Nifty 50 ended 0.37 per cent lower at 18,003.75 and the S&P BSE Sensex slipped 0.37 per cent to 60,346.97, after briefly entering positive territory in late afternoon trade
Photo Credit :
Indian benchmark indices struggled for direction on Wednesday amid weak global cues and ended in red, dragged by sharp losses in tech stocks on rating downgrades and US interest rate hike worries, although stronger bank stocks arrested the decline.
The Nifty 50 ended 0.37 per cent lower at 18,003.75 and the S&P BSE Sensex slipped 0.37 per cent to 60,346.97, after briefly entering positive territory in late afternoon trade.
"Markets regained most of its lost ground after the morning sell-off, with Nifty ending above the psychological 18,000 mark. Spooking investors across the globe is the uncertainty over the Federal Reserve's rate-hike timeline, after the latest US inflation update showed consumer prices remained elevated in August. So, the biggest catalysts and next direction for Nifty depends on the FOMC monetary policy meeting on September 20-21," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities.
The indices had dropped 1.65 per cent and 1.91 per cent, respectively, at open, after an unexpected increase in US inflation stoked fears of aggressive rate hikes and roiled world markets.
"Despite a massive gap-down opening on Wednesday on back of negative global cues, our markets managed to recover strongly. The heavy lifting from the Banking & Metal stocks helped Nifty to close near the 18,000 mark. The market-wide participation at lower levels was also healthy, which is a reflection of the positive undercurrent," said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.
The Nifty IT index was the hardest hit in Mumbai, sliding 3.4 per cent, with heavyweight IT services majors Infosys and Tata Consultancy Services dropping around 4.5 per cent and 3.4 per cent, respectively.
Goldman Sachs downgraded Tata Consultancy Services and Infosys to "sell" from "buy" and slashed target prices citing a potential slowdown in dollar revenue growth in the face of a looming macroeconomic stress.
Most other sub-indices recovered during the session, led by banking and metal stocks, with analysts saying India was better placed to weather the inflation tumult with a stronger growth trajectory than other economies.
Persistent foreign investor purchases have also propped up the domestic market.
The Nifty Bank index jumped 1.3 per cent to a record closing high, boosted by a 2.5 per cent climb in largest lender State Bank of India and 4.5 per cent surge in IndusInd Bank.
Vedanta shares surged 10.1 per cent after the conglomerate said it will look at creating a hub to manufacture Apple's iPhones and TV equipment, along with possibly diving into the electric vehicle sector.
The Nifty Metal index climbed 1.6 per cent.
India's most valuable company Reliance Industries slipped 1.2 per cent.
(With Reuters Inputs)