Benchmark stock indices Sensex and Nifty ended on a nearly month’s low on Wednesday, extending losses for the third straight day after last-hour sell-off in consumer durables, private banks and IT shares.
The volatile trading session saw the 30-share BSE Sensex drop by 275.01 points, or 0.32 per cent, to settle at 84,391.27, a level not seen since November 11. The 50-share NSE Nifty fell by 81.65 points, or 0.32 per cent, also to close at a month’s low of 25,758.
During the day, the Sensex had hit an intraday high of 85,020.34 and a low of 84,313.62, while the Nifty had hit a high of 25,947.65 and a low of 25,734.55.
Analysts said Indian markets mirrored global caution ahead of the US Federal Reserve’s Monetary Policy Meeting, since expectations of another rate cut by the American central bank have heightened.
“Indian markets mirrored global caution, weighed down by persistent FII outflows, INR weakness, and uncertainty surrounding US-India trade negotiations despite ongoing discussions. In the near term, market direction will be influenced by central bank cues and clarity on trade developments,” said Vinod Nair, Head of Research, Geojit Investments Ltd.
“Focus now shifts to the upcoming U.S. Fed meeting, where a 25 basis points rate cut is widely expected. However, internal divisions and mixed economic indicators may temper expectations for further rate cuts in 2026,” he added.
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Among the Sensex constituents, Eternal, Trent, Bharti Airtel, Infosys, Tech Mahindra, UltraTech Cement, ICICI Bank, HDFC Bank, Bajaj Finance, Tata Consultancy Services, Bharat Electronics Ltd, Larsen & Toubro and Tata Motors Passenger Vehicles were the laggards.
However, Tata Steel, Sun Pharmaceuticals, ITC, NTPC, Reliance Industries, HCL Technologies, PowerGrid, and Asian Paints were among the gainers.
Meanwhile, Foreign Institutional Investors (FIIs) remained the net sellers of equities worth ₹3,760.08 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹6,224.89 crore.
In Asian trading, Japan’s benchmark Nikkei 225 dropped 0.1 per cent to finish at 50,602.80. Australia’s S&P/ASX 200 slipped nearly 0.1 per cent to 8,579.40. South Korea’s Kospi declined 0.2 per cent to 4,135.00. Hong Kong’s Hang Seng gained 0.4 per cent to 25,540.78, while the Shanghai Composite shed 0.2 per cent to 3,900.50. Taiwan’s Taiex surged 0.8 per cent.
European markets and Wall Street were also broadly trading lower as global shares were lower, trading in a narrow range ahead of the Federal Reserve meeting later on Wednesday.
France’s CAC 40 slipped 0.3 per cent in early trading to 8,026.35, while the German DAX dipped 0.3 per cent to 24,081.63. Britain’s FTSE 100 added 0.1 per cent to 9,652.21.
The future for the S&P 500 edged 0.1 per cent higher, and that for the Dow Jones Industrial Average was little changed.
Apart from a likely rate cut, investors are waiting to see what the Fed will say about where interest rates will go after that. Inflation has remained above the Fed’s 2 per cent target, and Fed officials are split in their opinions about whether high inflation or the slowing job market is the bigger threat to the economy.
In other dealings early Wednesday, benchmark US crude rose 11 cents to USD 58.36 a barrel. Brent crude, the international standard, added 16 cents to USD 62.10 a barrel.
In currency trading, the US dollar fell to 156.82 Japanese yen from 156.89 yen. The euro cost USD 1.1644, up from USD 1.1626.
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