In early trade on Wednesday, benchmark equity indices Sensex and Nifty faced a downturn, influenced by weak global trends, escalated crude oil prices, and foreign fund outflows.
The 30-share BSE Sensex observed a dip of 281.18 points or 0.38 per cent, settling at 73,622.73, while the NSE Nifty witnessed a decline of 93.15 points or 0.41 per cent, reaching 22,360.15.
Among the Sensex constituents, 22 stocks trended downwards, with Bharti Airtel, Nestle India, Sun Pharma, and IndusInd Bank being the prominent decliners. Conversely, Ultratech Cement, Tech Mahindra, Axis Bank, and Tata Steel managed to sustain positive momentum.
On the NSE Nifty, 38 shares experienced negative trends.
Chief Investment Strategist at Geojit Financial Services, V K Vijayakumar, highlighted that escalating bond yields in the US are impacting global equity markets. The waning expectations of a US Federal Reserve interest rate cut in July, given the tight labor market and fears of inflation exacerbated by rising crude prices, contribute to the market's apprehension.
Vijayakumar noted that despite recent dovish sentiments from the Fed chief, optimism regarding three rate cuts in 2024 has diminished, likely continuing to burden equity markets worldwide. He also suggested that in India, Foreign Portfolio Investors (FPIs) may persist in selling.
Asian markets mirrored the negative sentiment, with Hong Kong's Hang Seng and Japan's Nikkei 225 plunging by 0.78 per cent and 0.68 per cent, respectively. China's Shanghai Composite recorded a loss of 0.24 per cent.
Tuesday witnessed predominantly lower closures in the US and European markets.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,622.69 crore on Tuesday, as per exchange data.
The global oil benchmark, Brent crude, rose by 0.08 per cent to reach USD 88.99 a barrel.
In the previous session, the BSE benchmark Sensex observed a decline of 110.64 points or 0.15 per cent, closing at 73,903.91, while the NSE Nifty ended 8.70 points or 0.04 per cent lower at 22,453.30.s
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