The US markets reversed all their last session gains on Wednesday and all the key indices ended lower on getting a batch of weaker-than-expected earnings and as commodities resumed their sell-off. Tech heavy Nasdaq suffered a deep cut after Apple tumbled sharply, on a report that iPad mini shipments will fall 20 to 30 percent quarter-over-quarter to 10 to 12 million units in the second quarter. In earnings reaction Bank of America tumbled nearly 5 percent after the financial giant posted results that fell short of expectations. Bank of New York Mellon also declined after the bank missed earnings expectations, despite posting inline revenue. Intel too traded lower after missing the earnings estimates.
Meanwhile, the Federal Reserve released its Beige Book, a compilation of anecdotal evidence on economic conditions from each of the twelve Fed districts and said that the reports suggest overall economic activity expanded at a moderate pace during the reporting period from late February to early April, helped by improved conditions in the construction sector and rising house prices in many parts of the country. However, the International Monetary Fund has downgraded its outlook for US growth in its latest report. The IMF now forecasts the US to grow by 1.9 percent in 2013 and 4 percent in 2014.
The Dow Jones Industrial Average ended down 138.19 points or 0.94 percent at 14,618.59, the Nasdaq tumbled by 59.96 points or 1.84 percent to 3,204.67 and the S&P 500 lost 22.56 points or 1.43 percent to 1,552.01.
Indian ADRs closed mostly lower on Wednesday, HDFC Bank was down by 0.51%, ICICI Bank was down by 0.32%, Infy was down by 0.87%, Wipro was down by 0.235 and Tata Motors was down by 0.81%.
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