MUMBAI: Benchmark indices Sensex and Nifty ended lower in a volatile session on Wednesday as investors turned cautious ahead of the RBI’s monetary policy decision later this week and concerns over global trade tensions.
The 30-share BSE Sensex declined 312.53 points or 0.40 per cent to settle at 78,271.28, after slipping 367.56 points or 0.46 per cent to 78,216.25 during intraday trade. The NSE Nifty dropped 42.95 points or 0.18 per cent to 23,696.30.
Profit-taking after Tuesday’s sharp rally and the rupee hitting a record low also dampened market sentiment. On Tuesday, Sensex had surged 1,397.07 points, whileb Nifty soared 378.20 points to settle at one-month highs, tracking firm global trends.
Among the Sensex constituents, Asian Paints fell over 3 per cent after posting a 23.5 per cent drop in consolidated net profit at Rs1,128.43 crore for the December quarter, impacted by weak festive demand and muted consumer sentiment.
Laggards
Titan, Nestle, Hindustan Unilever, State Bank of India, Larsen & Toubro, ITC, Zomato, and Bajaj Finserv were also among the laggards. On the other hand, Adani Ports, IndusInd Bank, Tata Motors, and HDFC Bank ended with gains.
The Reserve Bank of India (RBI) began its monetary policy deliberations on Wednesday, with the decision set to be announced on Friday, February 7.
Meanwhile, India’s services sector activity grew at the slowest pace in over two years in January due to a softer rise in sales and output, according to a monthly survey.
The HSBC India Services PMI Business Activity Index fell to 56.5 in January from 59.3 in December, marking its lowest level since November. In PMI terms, a reading above 50 indicates expansion, while below 50 signals contraction.
The domestic market traded within a narrow range in negative territory. Investors are weighing the improved domestic outlook, buoyed by a favourable budget, against lingering global uncertainties from the tariff war.
US bond yields
“While falling US bond yields and lower crude oil prices have supported sentiment, the rupee’s depreciation could offset these gains,” said Vinod Nair, Head of Research at Geojit Financial Services.
In Asian markets, Seoul and Tokyo closed higher, while Hong Kong ended in the red. European markets were trading lower, while US markets ended higher on Tuesday.
Foreign Institutional Investors (FIIs) turned net buyers on Tuesday after continuous selling in previous sessions, purchasing equities worth Rs809.23 crore, according to exchange data.
Global oil benchmark Brent crude fell 0.84 per cent to $75.56 a barrel.
