Stock Market Today: Nifty Logs Biggest One-Day Fall In 10 Months; FPIs Stay Net Sellers
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KEY HIGHLIGHTS
FPIs Stay Net Sellers
Overseas investors remained net sellers of Indian equities for the third consecutive session on Wednesday.
Foreign portfolio investors offloaded stocks worth Rs 1,322.08 crore, according to provisional data from the National Stock Exchange.
Domestic institutional investors remained net buyers, and mopped up stocks worth Rs 4,754.34 crore, the NSE data showed.
Foreign institutions have been net buyers of Rs 1,61,589 crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.
Yield On The 10-Year Bond Ends Flat
The yield on the 10-year bond closed flat at 7.17% on Wednesday.
Source: Bloomberg
Rupee Flat Against U.S Dollar
The local currency closed flat at 83.18 against the U.S dollar on Wednesday.
Source: Bloomberg
Nifty Falls Most In 10 Months As Selloff Halts Record Run: Closing Bell
Indian stocks benchmark Nifty 50 dropped the most in 10 months to retreat from all-time highs as investors booked profits, halting its record-setting burst. The Sensex fell the most since October 26.
The Nifty 50 ended 302.95 points or 1.41% lower at 21,150.15 and the Sensex ended 930.88 points or 1.3% lower at 70,506.31. Intraday, the Nifty hit a low of 21,087.35 and the Sensex fell to 70,302.60.
The declines were broad-based with all sectoral indices ending lower, with Nifty Media witnessing the worst fall.
Indian stocks latest record-setting burst was fuelled by state election results and U.S. Federal Reserve rate cut pivot signal. The exuberance had prompted analysts to predict a pullback. Fresh COVID fears after India reported 21 cases of the new coronavirus variant JN.1 from across the country added to the negative sentiment.
"The domestic market saw a sharp and abrupt sell-off in the second half, despite the positive trend in global peers, " Vinod Nair, head of research at Geojit Financial Services said.
"This is attributable to profit booking from the recent sharp rally stretching valuations of mid- and small-cap stocks. The recent uptick in crude prices prompted investors to book profits," he added.
Going ahead, Shrikant Chouhan, head of equity research at Kotak Securities said, "We are of the view that, as long as the index is trading below 21225/70800 the weak sentiment is likely to continue. Below the same, the market could retest the level of 21000-20930/70300-70000."
Only three stocks in the Nifty 50 ended higher. Reliance Industries Ltd., Larsen & Toubro Ltd., Infosys Ltd., State Bank of India, ICICI Bank Ltd., Hero MotoCorp Ltd., Cipla Ltd led to the fall in the Nifty.
Oil and Natural Gas Corp, and Tata Consumer Products Ltd., and Britannia Industries Ltd. supported the benchmark indices.
All sectoral indices fell with Nifty Media and Nifty Metal falling the most. Nifty FMCG fell the least.
The broader indices underperformed the benchmark indices. The S&P BSE MidCap fell 3.12%, and BSE SmallCap declined 3.42%. All 20 sectors, compiled by the BSE declined. BSE Telecommunication and IT sector fell the most among sectoral indices.
The market breadth was skewed in the favour of the sellers. Around 3,175 stocks declined, 661 stocks rose, and 85 remained unchanged on BSE.
Nifty, Sensex At Day's Lows
