The S&P BSE Sensex was trading with a loss of 11 points at 26,068.42 on Wednesday afternoon after opening with a gain of 35 points, or 0.14%; the 50-scrip Nifty too shed early gains and was trading at 7,927.90, a loss of 0.01%.
ICICI Bank, GAIL (India), Reliance Industries and Bajaj Auto were the top Sensex losers, while Dr Reddy's Labs and Tata Steel were trading with gains.
The highlight of the day was liquor firm United Spirits, which plunged almost 3% in early trade to Rs 2,890, close to its 52-week low of Rs 2,747, on news that the company is seeking shareholders' approval to declare itself sick under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985.
The massive erosion in its net worth from a peak of Rs 5,849.62 crore in 2012-13 to Rs 845 crore in 2014-15, while its accumulated losses mounted to Rs 5,045.45 crore, 50% greater than its peak net worth in the immediately preceding four financial years, said a notice issued by the company to its shareholders for the EGM scheduled to be held on 22 January, 2016.
The notice listed USL's diminution in value of long-term investments in subsidiaries, loans to subsidiaries, fall in value of investments made in overseas subsidiaries, provision on advances to United Breweries (Holdings), provision for doubtful debts and loss on sale of shares of subsidiaries as causes for the erosion.
The total loss as a result of the above factors is Rs 2,082.39 crore, the company said.
United Spirits, once belonging to Vijay Mallya, was taken over by UK-based liquor company, Diageo.
