Markets Settle Fourth Consecutive Session In Red, Sensex About 400 Points Down
The benchmarks experienced a muted opening to the day, tracking subdued global cues and broad-based selling pressure across sectors, with the exception of PSU banks.
Indian stock markets ended Wednesday's trading session in red. The BSE Sensex settled for the day above 81,700, crashing nearly 400 points, while the NSE Nifty50 ended trading below 25,100, tanking more than 100 points.
On the 30-share Sensex, PowerGrid, HUL, NTPC, HCL Tech, and Maruti settled among the gainers today. On the other hand, the laggards included Tata Motors, BEL, UltraTech Cement, Tech M, and M&M.
In the broader markets, it was a sea of red across the indices. The Nifty Midcap Select dominated after it tumbled 1.30 per cent. Sectorally, the Realty index crashed 2.49 per cent, while the FMCG index remained the only sector in green and climbed 0.18 per cent.
"Profit-booking has been observed in Indian markets post-GST reforms, as investors recalibrate valuations and Q2 earnings expectations. IT stocks underperformed due to H-1B fee hikes, while US trade rhetoric amid ongoing trade negotiations and weak global cues are prompting cautious investor sentiment. India’s relatively high valuations, coupled with moderation in earnings growth, continue to lead FIIs to trim their positions," noted Vinod Nair, Head of Research, Geojit Investments Limited.
Notably, the benchmarks experienced a muted opening to the day, tracking subdued global cues and broad-based selling pressure across sectors, with the exception of PSU banks.
At 9:21 AM, the Sensex slipped 289 points, or 0.35 per cent, to 81,813, while the Nifty dropped 87 points, or 0.35 per cent, to 25,082. Investor mood was dented after US Federal Reserve Chair Jerome Powell flagged stagflation risks and highlighted elevated asset prices, including stocks, gold, silver, and bitcoin. Powell also reiterated the challenges for inflation and employment, hinting at a tough policy path ahead.
Domestic markets continue to struggle with valuation concerns. Although the Nifty is about 4 per cent below its September 2024 peak, analysts noted that valuations remain above long-term averages. “These valuations will only be justifiable when earnings growth accelerates, hopefully by FY27,” they said.
Adding to the headwinds, persistent foreign outflows, higher US visa fees, and tightening liquidity conditions have further pressured domestic equities. On Tuesday, Foreign Institutional Investors (FIIs) offloaded shares worth Rs 3,551 crore, while Domestic Institutional Investors (DIIs) provided support with net purchases of Rs 2,671 crore, according to exchange data.
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