Stock market fell for the second consecutive day, Sensex fell by 286 points.
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The trend of decline in domestic stock markets continued for the second consecutive day on Wednesday and BSE Sensex fell further by 286 points. Market sentiment was also affected by continued capital withdrawal by foreign institutional investors and weak trend of American and Asian markets. The 30-share BSE Sensex closed at 65,226.04, down 286.06 points, or 0.44 percent. At one time during trading it had fallen to 633.33 points. National Stock Exchange’s Nifty also closed at 19,436.10 with a decline of 92.65 points or 0.47 percent. Among Sensex shares, Axis Bank fell the most by 4.38 percent.
Apart from this, State Bank of India, IndusInd Bank, NTPC, UltraTech Cement, Bajaj Finserv, Tata Steel, JSW Steel, Maruti and Larsen & Toubro were major losers. On the other hand, the profitable stocks include Nestle, Hindustan Unilever, HDFC Bank, Tata Consultancy Services, Infosys, HCL Technologies and Asian Paints. Kotak Securities Ltd. Shrikant Chauhan, head of research (retail), said, “Global institutional investors are withdrawing money from the domestic stock market. This is because the US dollar exchange rate and rising bond yields have made emerging market assets less attractive for investment.
He said, “Despite strong domestic macroeconomic data, India is not untouched by global problems. In such a situation, if there is a decline in global markets along with concerns about further increase in policy rates, its impact can be seen. BSE Midcap index fell by 1.52 percent while Smallcap fell by 0.96 percent. Vinod Nair, head of research at Geojit Financial Services, said, “The strong employment data in the US has strengthened the Fed’s hawkish stance. With bond yields reaching a multi-year high, there seems to be a possibility of a policy rate hike. Globally, investors are adopting a risk-averse strategy in view of concerns about inflation and the rise in the dollar.
He said, “Despite the strength of the economy in India, ‘correction’ is being seen in the market after the high prices of shares of medium companies and the recent rise.” Other markets in Asia include South Korea’s Kospi, Japan’s Nikkei and Hong Kong’s Hang Seng were in loss while China’s Shanghai Composite was in profit. There was a bullish trend in early trading in the major markets of Europe. US markets had fallen by more than one percent on Tuesday. According to stock market data, foreign institutional investors sold shares worth Rs 2,034.14 crore on Tuesday. Global oil benchmark Brent crude fell 0.91 percent to $90.09 per barrel.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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