Benchmark indices ended a per cent lower on Wednesday amid profit booking and weak global cues.
The Sensex was down 790 points or 1.08 per cent at 72,304.88, while the Nifty was down 247 points or 1.11 percent at 21,951.
Cash market volumes on the NSE were lower than the previous two sessions at ₹0.94-lakh crore. Broad market indices fell more than the Nifty even as the advance decline ratio fell to 0.21:1, the lowest since December 20, 2023.
Apollo Hospitals and Power Grid Corporation were the top Nifty losers, down 3.9 per cent and 4.4 per cent respectively. The broader market saw a sharp selloff, down 2 per cent. All sectors ended in red with selling seen in oil and gas, PSU banks, realty and auto down 2 per cent each. Volatility index India VIX surged 4 per cent above the 16 level.
Profit booking weighed on Indian markets, fuelled by concerns about India’s Q3 GDP growth potentially slowing to 6.6 per cent from 7.6 per cent in Q2. Rate-sensitive sectors faced pressure, contributing to broader market underperformance, led by FPI selling.
“Markets turned cautious ahead of the release of India’s Q3 GDP data on Thursday and the F&O monthly expiry. Further, the US Q4 GDP preliminary reading and core PCE data would keep investors busy. We expect the market to remain volatile amid key events,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Indian markets were jittery mirroring weak global markets. Global investors are awaiting the key US economic data like personal consumption expenditure, in anticipation of good forecast there is a fear that Fed rate cut maybe delayed.”
FPIs sold shares worth ₹1,879 crore, while domestic institutions bought shares worth ₹1,827 crore.
Asian stocks were mostly lower on Wednesday in cautious trading ahead of the US inflation reading this week that could influence the timing of the US Fed’s easing cycle. European stocks struggled for traction as traders brace for a slew of economic data in the second half of the week that will help determine the path of monetary policy.
“Nifty formed a bearish engulfing pattern, engulfing the previous two candles. A breach of 21,801 on the downside could bring more bearishness while 22,085 could act as a resistance in the near term. Markets seem to be coming out of sideways move and looking set to fall. The next two days will determine whether this will happen or once again the markets will come back into sideways move,” said Deepak Jasani, Head of Retail Research, HDFC Securities.