The 30-share BSE Sensex fell in the second session, falling 1,064.12 points or 1.30 percent to close below the 81,000 mark at 80,684.45.
Traders attributed the decline to continued foreign capital outflows and a negative trend in global markets, which dampened overall sentiment.
Stock Market Updates: Indian stock markets opened on a weaker note on Wednesday, with key benchmark indices trading in the red during the early hours. The BSE Sensex fell 149.31 points to 80,535.14, while the NSE Nifty fell 62.9 points to 24,273.10.
Market participants now await key domestic and global events for further cues.
Gift Nifty on NSE IX was trading down 66.5 points, or 0.27%, at 24,364 on Wednesday, indicating a negative start for Dalal Street.
Equity Benchmark Index Sensex and Nifty fell. Up more than 1% on Tuesday, as a broad sell-off gripped markets amid investor caution ahead of the US Federal Reserve’s interest rate decision.
Traders attributed the decline to continued foreign capital outflows and a negative trend in global markets, which dampened overall sentiment.
The 30-share BSE Sensex fell in the second session, falling 1,064.12 points or 1.30 percent to close below the 81,000 mark at 80,684.45. Intraday, it fell 1,136.37 points or 1.39 percent to 80,612.20.
Similarly, the NSE Nifty closed down 332.25 points or 1.35% at 24,336.
Market breadth reflected the bearish mood, with 2,442 stocks declining, 1,576 advancing, and 89 unchanged on the BSE.
Key factors in play
“Ahead of major monetary policy announcements from the US Fed, Bank of Japan (BoJ), and Bank of England (BoE), pessimism is spreading across sectors. While markets expect a 25 bps rate cut from the Fed. , but the focus remains on hawkish commentary. Meanwhile, the BoJ and BoE are expected to maintain their current policy stance,” said Vinod Nair, head of research at Geojit Financial Services.
Adding to the woes, the rupee hit a record low, and a widening trade deficit further weighed on market sentiment.
Sectoral and stock performance
All 30 constituents of the Sensex closed in the red, with Bharti Airtel, IndusInd Bank, JSW Steel, TCS, Asian Paints, L&T, Reliance Industries, and HDFC Bank lagging behind. .
The BSE mid-cap index fell 0.65%, while the small-cap index shed 0.52%. Sectoral indices reflected broader weakness, with BSE Telecom falling 2.18%, followed by Metal (1.77%), Auto (1.70%), Energy (1.64%), and Financial Services (1.37%).
“Liquidity deficit in the banking system, driven by advance tax payments and potential dollar sales by the RBI to hedge rupee volatility, added to the pressure,” said Deputy Retail Research at HDFC Securities. Banking stocks were among the top drags, with the Bank Nifty down 1.5 percent, noted Head Devrush Vakil.
Global market sentiment
Asian markets including Seoul, Tokyo, Shanghai and Hong Kong remained bearish, while European stocks traded in negative territory. On Wall Street, the index had a mixed performance on Monday.
“Global concerns center around the possibility that the Fed could signal a slower pace of rate cuts, along with cautious comments for future policy meetings,” the lawyer added.
Foreign fund flows and oil prices.
According to exchange data, foreign institutional investors (FIIs) sold equity worth Rs 278.70 crore on Monday. Meanwhile, Brent crude was down 0.50 percent at $73.58 a barrel.
IPO Activity and Outlook
Despite the market turmoil, primary markets remained active, with eight IPOs opening this week and key listings including One MobiKook, Vishal Megamart, and Cy Life Sciences scheduled for Wednesday.
“Amid volatile markets, investors are closely monitoring US retail sales data and the Fed’s policy announcement for guidance on the pace of rate cuts. Caution among FIIs reflects their focus on global macro trends. is,” said Siddhartha Khemka, head of research at Motilal Oswal Financial Services.
On Monday, the Sensex fell 384.55 points to close at 81,748.57, while the Nifty closed down 100.05 points at 24,668.25.