MUMBAI: Stock markets extended their losing streak for the second straight session on Wednesday, with the benchmark Sensex falling by 239 points, weighed down by a sharp decline in FMCG major ITC.
The 30-share BSE Sensex declined by 239.31 points or 0.29 per cent to close at 81,312.32. During intraday trade, it slipped as much as 307.61 points or 0.37 per cent to 81,244.02. The broader NSE Nifty also dropped 73.75 points or 0.30 per cent to settle at 24,752.45.
Market experts attributed the range-bound trade to caution ahead of the monthly F&O expiry on Thursday, along with key macroeconomic data releases such as GDP and industrial production figures. Sectorally, FMCG, auto, and pharma stocks dragged the indices lower, while banking (especially PSU), media, and energy counters posted gains.
ITC fell over 3 per cent after British multinational BAT offloaded a 2.5 per cent stake in the company through a block deal worth Rs12,927 crore (approximately $1.51 billion), becoming the biggest drag on the Sensex.
Other laggards included IndusInd Bank, Nestle, UltraTech Cement, Mahindra & Mahindra, Power Grid, Asian Paints, Sun Pharma and Tech Mahindra. On the positive side, Bajaj Finance, Bharti Airtel, ICICI Bank, Adani Ports and HCL Technologies ended in the green.
“The domestic indices remained range-bound with a negative bias due to lack of FII support and rich valuations. Concerns about India-US trade relations, especially with the expiry of the 90-day pause period, added external pressure,” said Vinod Nair, Head of Research at Geojit Financial Services.
The BSE smallcap index rose by 0.50 per cent, while the midcap index dipped 0.22 per cent. Among the sectoral indices, FMCG fell the most by 1.33 per cent, followed by metal (0.69 per cent), auto (0.67 per cent), consumer durables (0.58 per cent), commodities (0.52 per cent), and consumer discretionary (0.51 per cent). Sectors like financial services, industrials, telecom, capital goods, and technology posted modest gains.
Trading in narrow range
“Stock markets traded in a narrow range with a negative bias as weak cues from European markets and the upcoming F&O expiry prompted investors to book profits. Investors are also awaiting the US FOMC meeting minutes for clarity on interest rate trajectory,” said Prashanth Tapse, Senior Vice President (Research) at Mehta Equities.
Ajit Mishra, Senior Vice President, Research, Religare Broking, added that although global cues remain steady and domestic fundamentals are supportive, erratic FII inflows have added to the volatility.
In Asia, South Korea’s Kospi closed higher, while Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng ended in the red. European markets were trading lower in early deals. Meanwhile, US indices closed sharply higher on Tuesday, with the Nasdaq Composite rallying 2.47 per cent, S&P 500 rising 2.05 per cent and Dow Jones climbing 1.78 per cent.
Foreign Institutional Investors (FIIs) were net buyers on Tuesday, purchasing equities worth Rs348.45 crore, according to exchange data. Global oil benchmark Brent crude rose 0.69 per cent to $64.57 per barrel.
On Tuesday, the Sensex had declined by 624.82 points or 0.76 per cent to end at 81,551.63, while the Nifty had fallen by 174.95 points or 0.70 per cent.
