MUMBAI: Equity benchmark indices Sensex and Nifty today continued their losing streak for the third consecutive session on Wednesday as losses continued and investors sold off utility, capital goods, and metal stocks amid foreign fund outflows.
Investor sentiment remained subdued ahead of the US Federal Reserve’s policy meeting outcome scheduled later in the day, traders said.
The 30-share BSE Sensex fell 502.25 points or 0.62 per cent to close at 80182.20, marking its third straight day of losses. Intraday, it plunged 634.38 points or 0.78 per cent to hit 80050.07.
On the BSE, 2,563 stocks declined, 1,442 advanced, and 94 remained unchanged.The NSE Nifty slid 137.15 points or 0.56% to settle at 24198.85.
“The near-term market construct has turned weak, with FIIs turning sellers on rallies. Tuesday’s massive FII sell-off of Rs6410 crore in the cash market suggests more selling could follow on market bounces.
Global markets will focus on the Fed’s decision expected tonight. While a 25 bps rate cut is factored in, the Fed’s commentary will be crucial.
Top losers
In the 30-share blue-chip pack, Tata Motors, Power Grid, NTPC, Adani Ports, JSW Steel, ICICI Bank, Larsen & Toubro, and Bajaj Finance were the top losers. On the other hand, Tata Consultancy Services, Reliance Industries, Tech Mahindra, and HCL Technologies registered gains.
Nifty fell for the third session in a row, losing 137 points amid selling pressure ahead of the US Fed’s rate decision. Over these three sessions, Nifty has declined by 2.3%. FII selling intensified on Tuesday with equities worth Rs6400 crore offloaded, inducing caution in the Indian markets.
“Investors are also eyeing interest rate decisions from Japan and England, as well as US Q3 GDP data, due Thursday. Markets are likely to trade sideways, with the Fed commentary setting the near-term trend,” said Siddhartha Khemka, Head – Research, Wealth Management at Motilal Oswal Financial Services.
The BSE small-cap index fell 0.76 per cent, while the mid-cap index dipped 0.61 per cent. Among sectoral indices, utilities slid 2.06 per cent, followed by power (1.78 per cent), capital goods (1.56 per cent), metal (1.44 per cent), industrials (1.30 per cent), and financial services (1.20 per cent).
Rupee slips into record low
However, BSE IT, healthcare, and focused IT indices ended in the green.The rupee slipped 3 paise to close at a record low of 84.94 against the dollar on Wednesday.
Investors avoided banking stocks ahead of the Fed decision, focusing on the Fed Chair’s commentary regarding inflation and growth amid worsening global economic conditions.
“The rupee’s ongoing slide to fresh lows also dampened sentiment as a prolonged fall could worsen the trade deficit and stoke inflation,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Foreign Institutional Investors (FIIs) sold equities worth Rs6409.86 crore on Tuesday adding to market losses, according to exchange data
In Asian markets, Seoul, Shanghai, and Hong Kong closed higher, while Tokyo ended lower. European markets were trading in positive territory during mid-session deals, while Wall Street finished lower on Tuesday.
Brent crude rises
Global oil benchmark Brent crude rose 0.48 per cent to $73.67 per barrel.
“The upcoming IPO rush, with 15 companies launching their offers by December 20, 2024, is drawing liquidity from the markets, adding pressure on major indices. Additionally, FIIs, key players in Indian equities, often wind down trading towards year-end due to Christmas holidays in Europe and North America, reducing demand for Indian stocks and weighing on the Nifty,” said Vinit Bolinjkar, Head of Research at Ventura Securities.
On Tuesday, the Sensex had plunged 1064.12 points or 1.30% to settle at 80684.45, while the Nifty declined 332.25 points or 1.35%.
