Sensex Snaps Two Sessions Of Gains

(RTTNews) - Indian shares fell on Wednesday, mirroring weak global cues as a string of optimistic data prints out of the U.S. and hawkish comments from three Federal Reserve officials brought the issue of interest rate rises in the U.S. back into focus.

While a Fed policymaker said he will push for an interest rate hike in June or July, two others said they expect up to three rate increases this year. The dollar hit a three-week high against the euro and a basket of currencies, putting rupee under pressure for the fifth straight session.

Snapping two sessions of gains, the 30-share BSE Sensex ended the session down 69 points or 0.27 percent at 25,704.61. The benchmark index hit as low as 25,503.40 before trimming initial losses. The 50-share Nifty index dropped 20.60 points or 0.26 percent to 7,870.15.

Automakers led losses, with Mahindra & Mahindra, Hero MotoCorp and Bajaj Auto declining 1-2 percent. Maruti Suzuki India dropped 1.1 percent after its parent Suzuki Motor admitted it had used improper fuel economy tests for some cars it sold in Japan.

GlaxoSmithKline (GSK) Consumer Healthcare tumbled 4 percent on posting sluggish quarterly results.

Punjab National Bank jumped 3.6 percent despite the state-run lender reporting a net loss of Rs 5 ,367.14 crore for the fourth quarter ended March, the biggest-ever quarterly loss by a domestic lender, against the backdrop of a surge in bad loans.

SBI advanced 1.8 percent after its board gave in-principle approval for the bank to explore a possible merger of five associate banks with itself.

Shares of Tata Metaliks remained locked at the 20 percent circuit limit for the second consecutive session, following its parent's decision to call off the merger plan.