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The 30-share BSE Sensex fell for the second straight session, nosediving 1,064.12 points or 1.30% to close at 80,684.45, slipping below the 81,000 mark.
Traders attributed the decline to sustained foreign capital outflows and a negative trend in global markets, dampening overall sentiment.
Stock Market Updates: The Indian stock market opened on a weak note on Wednesday, with key benchmark indices trading in the red during early hours. The BSE Sensex dropped 149.31 points to 80,535.14, while the NSE Nifty fell 62.9 points to 24,273.10.
Market participants are now looking ahead to key domestic and global events for further cues.
GIFT Nifty on the NSE IX was trading 66.5 points, or 0.27%, lower at 24,364 on Wednesday, indicating a negative opening for Dalal Street.
Equity benchmark indices Sensex and Nifty plunged over 1% on Tuesday, as broad-based selling gripped the markets amid investor caution ahead of the U.S. Federal Reserve’s interest rate decision.
Traders attributed the decline to sustained foreign capital outflows and a negative trend in global markets, dampening overall sentiment.
The 30-share BSE Sensex fell for the second straight session, nosediving 1,064.12 points or 1.30% to close at 80,684.45, slipping below the 81,000 mark. Intraday, it plummeted 1,136.37 points or 1.39% to touch 80,612.20.
Similarly, the NSE Nifty shed 332.25 points or 1.35% to settle at 24,336.
Market breadth reflected the bearish mood, with 2,442 stocks declining, 1,576 advancing, and 89 remaining unchanged on the BSE.
Key Factors at Play
“Pessimism looms across all sectors ahead of major monetary policy announcements by the US Fed, Bank of Japan (BoJ), and Bank of England (BoE). While markets anticipate a 25 bps rate cut from the Fed, the focus remains on hawkish commentary. Meanwhile, the BoJ and BoE are expected to maintain their current policy stance,” said Vinod Nair, Head of Research at Geojit Financial Services.
Adding to the woes, the rupee hit a record low, and a widening trade deficit further pressured market sentiment.
Sectoral and Stock Performance
All 30 constituents of the Sensex closed in the red, with Bharti Airtel, IndusInd Bank, JSW Steel, TCS, Asian Paints, L&T, Reliance Industries, and HDFC Bank among the biggest laggards.
The BSE midcap index dropped 0.65%, while the smallcap index declined 0.52%. Sectoral indices mirrored the broader weakness, with BSE Telecom plunging 2.18%, followed by metal (1.77%), auto (1.70%), energy (1.64%), and financial services (1.37%).
“The liquidity deficit in the banking system, driven by advance tax payments and likely dollar sales by the RBI to curb rupee volatility, added pressure. Banking stocks were among the top drags, with Bank Nifty ending 1.5% lower,” noted Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.
Global Market Sentiment
Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, ended lower, while European stocks traded in negative territory. On Wall Street, indices posted a mixed performance on Monday.
“Global concerns center around the possibility that the Fed might signal a slower pace of rate cuts going forward, alongside cautious commentary for future policy meetings,” Vakil added.
Foreign Fund Flows and Oil Prices
Foreign Institutional Investors (FIIs) net sold equities worth ₹278.70 crore on Monday, according to exchange data. Meanwhile, Brent crude prices eased 0.50% to $73.58 per barrel.
IPO Activity and Outlook
Despite market turbulence, primary markets remained active, with eight IPOs opening this week and key listings, including One Mobikwik, Vishal Mega Mart, and Sai Lifesciences, scheduled for Wednesday.
“Amid volatile markets, investors are closely monitoring U.S. retail sales data and the Fed’s policy announcement for guidance on the trajectory of rate cuts. The caution among FIIs reflects their focus on global macro trends,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.
On Monday, the Sensex had closed 384.55 points lower at 81,748.57, while the Nifty ended 100.05 points down at 24,668.25.
