Indian equity benchmarks snapped a two-day winning streak on Wednesday as the market resumed trade after a day's holiday. Weakness across global markets amid escalating tensions between Russia and the West over Ukraine and lower than expected GDP growth dampened investor sentiment.

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Losses in financial, auto and pharma stocks pulled the headline indices lower, though gains in metal and oil & gas shares kept the downside in check.

The 30-scrip Sensex index ended 778.4 points or 1.4 percent lower at 55,468.9 and the broader blue-chip index Nifty50 finished the day at 16,606, down 188 points or 1.1 percent from its previous close.

Maruti Suzuki, Dr Reddy's Laboratories, Bajaj Auto, Asian Paints, Hero MotoCorp, ICICI Bank and HDFC Bank were among the top blue-chip losers, closing 3-6 percent lower. On the other hand, Coal India, HDFC Life, SBI Life, Tata Steel, Hindalco and JSW Steel were the top gainers, rising 2-8.5 percent.

The India VIX -- also known as the fear index -- rose 2.3 percent to settle at 29.2 for the day, having soared as much as 7.9 percent during the session, as investors tracked newsflow on the Ukraine crisis closely. Last week, Russia's move to invade Ukraine had sent the index soaring to its highest level in 20 months.

Most auto stocks witnessed sharp correction as vehicle makers reported a mixed bag of February sales. Maruti Suzuki, Bajaj Auto and Tata Motors fell 1-6 percent, whereas Mahindra and Mahindra (M&M) gave up initial gains to end 0.9 percent lower.

Insurance company stocks SBI Life and HDFC Life gained 6-7 percent on reports of delay in the Life Insurance Corporation (LIC) IPO.

ONGC shares finished 1.5 percent higher. Crude oil continued to rise as sanctions on Russian banks hampered trade finance for crude shipments. Brent crude touched the $113 per barrel mark - its highest since 2014.

Amit Khurana, Head-Equities at Dolat Capital Market, maintained a cautious stance on the market. He is of the view that there are enough macro headwinds still left to play out, which would limit the upside potential in the market.

Traders will have more comfort in metal stocks, which is where they are likely to shift long positions, according to Deven Choksey of KRChoksey.

“The rest of the areas - particularly IT companies - would be a more preferred choice for parking funds, but in other areas, probably the impact of commodity and commodity-related issues will be seen. I see the market remaining a little tricky on sectors other than metal and IT,” he told CNBC-TV18.

Also Read: Recent correction has made valuations relatively reasonable: Motilal Oswal

Globally, European indices extended losses to a second day with the STOXX 600 down 0.7 percent in early hours. Germany's DAX was down 1.2 percent.

The MSCI world equity index, which tracks shares in 50 countries, was down 0.4 percent. S&P 500 futures were up almost 0.1 percent, suggesting a soft start ahead on Wall Street.

Also Read | Gold prices fall on profit-booking despite ongoing Russia-Ukraine war; at what levels should you buy?

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First Published:Mar 2, 2022 3:49 PM IST