Benchmarks retreat for 3rd day as volatility continues; Asian Paints sinks 8 pc

The Sensex and Nifty reversed preliminary features to shut within the pink for the third day working on Wednesday as traders continued to dump IT, consumption and steel shares regardless of a largely optimistic development abroad.

Unabated international fund outflows and rising crude oil costs put additional strain on markets.

Reversing course after a agency begin, the 30-share BSE Sensex ended 303.35 factors or 0.56 per cent decrease at 53,749.26.

Similarly, the broader NSE Nifty declined 99.35 factors or 0.62 per cent to finish at 16,025.80.

Asian Paints was the highest loser within the Sensex pack, plunging 8.04 per cent, adopted by TCS, Tech Mahindra, Wipro, Larsen & Toubro, Infosys, HCL Tech and SBI.

In distinction, NTPC, Kotak Mahindra Bank, Bharti Airtel, HDFC, Nestle India, ICICI Bank and ITC have been among the many main gainers, spurting as a lot as 3.84 per cent.

“Domestic indices wavered tracking mixed sentiments from the global markets as investors assessed the possibility of a recession in the US followed by the Fed policy tightening.

“Global markets are awaiting the discharge of the Fed minutes, which shall be evaluated for particulars on the trail of the upcoming rate hikes. In this whipsaw market, traders can resort to defensives and worth shares and sectors,” said Vinod Nair, Head of Research at Geojit Financial Services.

S Ranganathan, Head of Research at LKP Securities, said, “On a day when the Bank Nifty held regular, the opposite sectoral indices led by IT noticed intense revenue taking by FIIs with geopolitical points and supply-side disruptions taking centre-stage.”

“Declines outnumbered advances within the broader market though measures to reign in inflation have been taken to curb exports in sectors which have earned bumper earnings. A have a look at the Midcap and Smallcap100 indices immediately is reflective of the harm accomplished outdoors the benchmark indices,” he added.

In the broader market, the BSE smallcap gauge tumbled 2.94 per cent and the midcap index lost 1.93 per cent.

As many as 2,611 stocks declined, while 717 advanced and 116 remained unchanged.

Among BSE sectoral indices, IT slumped 3.19 per cent, followed by realty (3.02 per cent), industrials (2.66 per cent), consumer discretionary goods & services (2.47 per cent) and capital goods (2.44 per cent). Finance and bank indices ended marginally higher.

World markets ticked higher ahead of the release of the latest Federal Reserve meeting minutes.

In Asia, markets in Hong Kong, Shanghai and Seoul ended with gains, while Tokyo was modestly lower.

Exchanges in Europe were trading in the green in the afternoon trade. Bourses in the US had mostly ended lower on Tuesday.

International oil benchmark Brent crude jumped 1.37 per cent to USD 115.1 per barrel.

The rupee recovered 3 paise to settle at 77.54 (provisional) against the US currency in muted trade on Wednesday as interventions by banks supported the local unit while a stronger dollar in overseas markets restricted the gains.

Continuing their selling spree, foreign institutional investors offloaded shares worth a net 2,393.45 crore on Tuesday, as per stock change knowledge.

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