Indian equity indices tanked on Wednesday, sliding for the second consecutive trading session. The Nifty slipped below the 19,550 mark. All the sectoral indices on the NSE were in the red with PSU banks, metal and auto stocks declining the most.

As per provisional closing data, the barometer index, the S&P BSE Sensex tumbled 676.53 points or 1.02% to 65,782.78. The Nifty 50 index lost 207 points or 1.05% to 19,526.55.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index slipped 1.39% while the S&P BSE Small-Cap index declined 1.18%.

The market breadth was weak. On the BSE, 1,250 shares rose and 2,344 shares fell. A total of 144 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 9.67% to 11.28.

Fitch's downgrade of U.S. long-term debt rating on fiscal concerns and weak economic data from the euro zone and China triggered caution and weighed on risk sentiment.

Economy:

The Ministry of Coal has achieved a substantial surge in overall coal production during the month of July 23, reaching 68.75 million tonne (MT), surpassing the figures of 60.25 MT of the month July 22, representing an increase of 14.11%. The production of Coal India (CIL) has increased to 53.63 MT in the month of July 23 as compared to 47.29 MT in July 22 with the growth of 13.41%.

Buzzing Index:

The Nifty PSU Bank index slipped 2.61% to 4,476.45. The index tumled 3.12% in two trading sessions.

Canara Bank (down 3.96%), Bank of Baroda (down 3.21%), Punjab & Sind Bank (down 3.16%), Punjab National Bank (down 3.1%), Indian Overseas Bank (down 2.77%), Bank of India (down 2.68%), Union Bank of India (down 2.28%), State Bank of India (down 2.12%), Bank of Maharashtra (down 2.06%) and UCO Bank (down 1.59%) edged lower.

Stocks in Spotlight:

Ambuja Cements added 0.25%. The cement major's consolidated net profit jumped 31.2% to Rs 1,135.46 crore on 8.47% increase in revenue from operations to Rs 8,712.90 crore in Q1 FY24 over Q1 FY23.

Adani Ports and Special Economic Zone shed 0.68%. The company said that it has recorded bumper cargo volumes of 34 MMT in July 2023, implying a YoY growth of 7%.

Adani Wilmar slipped 2.80% after the company reported a consolidated net loss of Rs 79 crore in Q1 FY24 as against a net profit of Rs 194 crore posted in Q1 FY23. Revenue from operations stood at Rs 12,928 crore in the quarter ended 30 June 2023, down 12% year on year, reflective of steep decline in edible oil prices.

Metro Brands rose 1.89% after the company's standalone net profit rose 2.9% to Rs 106.19 crore in Q1 FY24 as compared with Rs 103.17 crore in Q1 FY23. Revenue from operations jumped 11.7% to Rs 555.57 crore during the quarter as compared with Rs 497.23 crore posted in corresponding quarter last year.

Adani Total Gas declined 1.17%. The natural gas distribution company reported 7.1% increase in net profit to Rs 147.69 core in Q1 FY24 from Rs 137.84 crore recorded in Q1 FY23. Revenue from operations rose marginally to Rs 1,055.58 crore in Q1 FY24 as against Rs 1,042.35 crore posted in Q1 FY23.

Godrej Properties slipped 2.07%. The company reported consolidated net profit of Rs 124.94 crore in Q1 FY24, steeply higher than Rs 45.55 crore in Q1 FY23. Revenue from operations zoomed to Rs 936.09 crore in June 2023 quarter from Rs 244.67 crore in the quarter ended 30 June 2022.

Sula Vineyards dropped 8.10% after the company received a notice of Rs 116 crore excise duty from the Maharashtra excise department. The demand notice is higher than the company's net revenue in Q4FY23 reported at Rs 113.23 crore.

Hero MotoCorp slipped 3.48%. The company sold 3,91,310 units in July 2023, lower than 445,580 units sold in July 2022.

TVS Motor Company added 0.48%. The company registered a sales growth of 4% increasing from 314,639 units in July 2022 to 325,977 units in July 2023.

Maruti Suzuki India fell 0.80%. The company announced that its total sales in the month of July 2023 rose 3.25% to 181,630 units as compared with 175,916 units sold in the same period last year. Meanwhile, the car major said its total production rose marginally to 186,654 units in July 2023 compared with 184,890 units in July 2022.

Eicher Motors lost 2.53%. The company's total motorcycles (Royal Enfield) sales jumped 32% to 73,117 units in July 2023 from 55,555 units sold in July 2022.

Ashok Leyland skid 1.95%. The company's total sales rose 11% to 15,068 units in July 2023 from 13,625 units sold in July 2022.

Global Markets:

The Dow Jones futures were down 169 points, indicating a negative opening in the US stock market today.

Markets in Europe and Asia tumbled on Wednesday after ratings agency Fitch cut the US credit rating.

Wall Street stocks ended mostly lower on Tuesday amid a slew of corporate earnings results, while manufacturing sector data supported hopes that the central bank could skip another rate hike in September.

Fitch Ratings lowered the United States' long-term foreign currency issuer default rating to AA+ from AAA Tuesday night, citing ?expected fiscal deterioration over the next three years.?

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