Stock Market Today: Sensex, Nifty Fall The Most In Over A Month; FPIs Remain Net Sellers
Sensex closed down 796 points, or 1.18%, at 66,800.84 while Nifty was 232 points or 1.15% lower at 19,901.40.
KEY HIGHLIGHTS
FPIs Remain Net Sellers For Second Straight day
Overseas investors remained net sellers of Indian equities on Wednesday for the second consecutive session.
Foreign portfolio investors offloaded stocks worth Rs 3,110.69 crore, according to provisional data from the National Stock Exchange.
Domestic institutional investors turned net sellers on Wednesday and sold equities worth Rs 573.02 crore, the NSE data showed.
Foreign institutions have been net buyers of Rs 1,30,074 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 7.18% on Wednesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened 19 paise to close at Rs 83.08 against the U.S dollar on Wednesday.
It closed at 83.27 on Monday.
Source: Bloomberg
Sensex, Nifty Fall For The Second Consecutive Session: Market Wrap
India's benchmark stock indices opened lower and declined through Wednesday to end second session lower. Both the indices slipped over 1% intraday, the most in over a month since Aug. 2, 2023.
"Today, both Nifty and Sensex experienced profit booking, largely attributed to a sharp sell-off in HDFC Bank following its analyst meeting. During the meeting, concerns were raised about potential margin pressure and the asset quality post-merger of HDFC twins," said Parth Nyati, the Founder of Tradingo.
"Additionally, global markets exhibited caution in anticipation of the upcoming FOMC meeting. Factors such as increasing U.S. bond yields, rupee weakness, a surge in crude oil prices, and selling by foreign institutional investors further contributed to the challenges faced by our markets," Nyati added.
Most sectoral indices dropped with non-banking financial services, banks, metals and realty sectors falling the most.
The S&P BSE Sensex closed down 796 points, or 1.18%, at 66,800.84 while the NSE Nifty 50 was 232 points or 1.15% lower at 19,901.40.
U.K. stocks rallied after British inflation slowed unexpectedly, catching traders off guard as they prepare for the Federal Reserve’s policy decision later.
The UK’s FTSE 250 index of domestic stocks jumped 1.5% after the inflation boost, with homebuilders sensitive to changes in interest rates leading the gains. Europe’s Stoxx 600 index also benefited from the improved sentiment, climbing for the first time in three days. U.S. equity futures were steady, while a gauge of Asian stocks retreated.
Most Asian markets dropped except South Korean Kospi, which was marginally higher. Fed Chair Jerome Powell and his colleagues are widely expected to hold rates later on Wednesday.
Power Grid Corp of India Ltd., ITC Ltd., Axis Bank Ltd., Coal India Ltd., and Sun Pharmaceutical Industries Ltd., were positively adding to the change in the Nifty 50 Index.
Whereas, HDFC Bank Ltd., Reliance Industries Ltd., Larsen & Toubro Ltd., Bharti Airtel Ltd., and Maruti Suzuki India Ltd. were negatively contributing to the change.
The broader market indices ended lower; the S&P BSE MidCap Index was down 0.33%, whereas S&P BSE SmallCap Index was also 0.51% lower.
Eighteen out of 20 sectors compiled by BSE declined, while the other two sectors advanced. S&P BSE Commodities, S&P BSE Metal and S&P BSE Realty fell the most.
The market breadth was skewed in the favour of the sellers. About 1,555 stocks rose, 2,103 declined, while 145 remained unchanged on the BSE.
