Indian stock indices declined for the third consecutive day on Wednesday despite opening with some gains in early trade. However, relentless foreign fund outflows ensured the benchmark Sensex closed lower by 120 points at a week’s low.
The 30-share BSE Sensex was down 0.14 per cent and settled at 84,559.65. During the day, it dropped 263.88 points or 0.31 per cent to 84,415.98.
The 50-share NSE Nifty declined by 41.55 points or 0.16 per cent to a week’s low of 25,818.55.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,381.92 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹1,077.48 crore, according to exchange data.
Selling in heavyweight stocks across sectors led to broad-based weakness, while muted cues from global markets further dampened investor sentiment, opined Ajit Mishra – SVP, Research, Religare Broking.
Analysts said a rebound in the rupee from record low levels offered temporary relief, but global uncertainty and sustained foreign selling kept upside potential limited.
“Foreign investors are pulling out funds, and emerging markets are struggling, while developed economies remain strong, showing that investors are becoming more cautious about emerging markets,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Also Read: Sensex tanks 533 pts, Nifty settles below 25,900
Among Sensex firms, Trent fell the most by 1.61 per cent. HDFC Bank dropped by nearly 1 per cent, emerging as a major drag on the index. ICICI Bank, Adani Ports, Bajaj Finserv, Bharat Electronics, Titan and Asian Paints were also among the laggards.
However, State Bank of India rose the most by 1.51 per cent, helping Sensex restrict losses. Infosys, Axis Bank and Maruti were among the gainers.
The rupee rebounded sharply by over 1 per cent in the early session to trade at 89 level against the US dollar briefly on heavy dollar selling by banks. The rupee later pared gains to close at 90.38, up by 55 points over the last record closing low of 90.93.
The BSE smallcap gauge declined 0.85 per cent and midcap index dipped by 0.53 per cent.
Among sectoral indices, capital goods declined by 0.96 per cent, realty (0.81 per cent), consumer durables, industrials (0.76 per cent), services (0.64 per cent). BSE Energy, IT, metal, oil & gas, teck and BSE Focused IT were the gainers.
A total of 2,694 stocks declined while 1,475 advanced and 159 remained unchanged on the BSE.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index ended in positive territory.
European markets were trading higher, but US markets ended mostly lower on Tuesday.
Brent crude, the global oil benchmark, jumped 2.12 per cent to USD 60.17 per barrel.
On Tuesday, the Sensex tanked 533.50 points or 0.63 per cent to settle at 84,679.86. The Nifty dropped 167.20 points or 0.64 per cent to 25,860.10.
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