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MUMBAI: Benchmark equity indices snapped a four-day winning run to close lower on Wednesday. Investors were unwilling to take long bets on Dalal Street ahead of the much anticipated outcome of the US Federal Reserve’s monetary policy meeting due later in the day.
Profit-booking was the prevalent theme and defensive sectors in the market found themselves in favour with investors. The Nifty FMCG and Nifty IT indices were the only two sectoral gainers on NSE.
The Nifty50 index ended 0.6 per cent or 101.7 points lower at 15,767.55 and the BSE Sensex gauge closed at 52,501.98, down 271.1 points or 0.5 per cent.
The US central bank is expected to stand pat on interest rates but there is some nervousness among investors on what it will say on interest rate hikes and the timing of tapering its record bond buying program.
Most economists are betting that the central bank will not talk about bringing forward its timeline for rate hikes or for tapering. According to several surveys, most global investors are counting on the Fed to taper bond buying from December this year and raise interest rates by the end of 2023.
Globally, too, the markets were muted with equities in other Asian regions ending lower and those in Europe seeing a tepid start to the day.
In the broader market, profit booking was heavier as the Nifty Midcap 100 and Nifty Smallcap 100 index ended 0.9 per cent and 0.5 per cent lower, respectively.
Given the fact that most of the oscillators are trading at their extremes, a sideways movement is likely to continue till the Nifty50 index breaches the resistance of 15,900, said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.
Among specific stocks, Adani Group companies were under the sell hammer for a third straight day as investors continue to dump shares following concerns over certain foreign investors in its listed entities. Shares of Adani Power, Adani Enterprises, , Adani Transmission, Adani Total Gas and Adani Green Energy fell 4-7 per cent.
Shares of consumer facing stocks continued to add to their gains as investors looked for defensive sectors and bet on the revival of consumer spending in the coming quarters. Further, the recent steep correction in global soft commodities like crude palm oil and soya have boosted the outlook for these companies’ margins.
Shares of steel stocks were also under pressure as they dominated the list of top laggards in the Nifty50 universe. Investors looked to book profits in cyclical trades amid rising concerns that the recent run-up in the sector will limit upside potential, making risk-reward unfavourable. Shares of , JSW Steel, SAIL and Jindal Steel ended 3-5 per cent lower.
Overall, the breadth of the market was negative as nearly two stocks fell for every one stock that rose on NSE.
Profit-booking was the prevalent theme and defensive sectors in the market found themselves in favour with investors. The Nifty FMCG and Nifty IT indices were the only two sectoral gainers on NSE.
The Nifty50 index ended 0.6 per cent or 101.7 points lower at 15,767.55 and the BSE Sensex gauge closed at 52,501.98, down 271.1 points or 0.5 per cent.
The US central bank is expected to stand pat on interest rates but there is some nervousness among investors on what it will say on interest rate hikes and the timing of tapering its record bond buying program.
Most economists are betting that the central bank will not talk about bringing forward its timeline for rate hikes or for tapering. According to several surveys, most global investors are counting on the Fed to taper bond buying from December this year and raise interest rates by the end of 2023.
Globally, too, the markets were muted with equities in other Asian regions ending lower and those in Europe seeing a tepid start to the day.
In the broader market, profit booking was heavier as the Nifty Midcap 100 and Nifty Smallcap 100 index ended 0.9 per cent and 0.5 per cent lower, respectively.
Given the fact that most of the oscillators are trading at their extremes, a sideways movement is likely to continue till the Nifty50 index breaches the resistance of 15,900, said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.
Among specific stocks, Adani Group companies were under the sell hammer for a third straight day as investors continue to dump shares following concerns over certain foreign investors in its listed entities. Shares of Adani Power, Adani Enterprises, , Adani Transmission, Adani Total Gas and Adani Green Energy fell 4-7 per cent.
Shares of consumer facing stocks continued to add to their gains as investors looked for defensive sectors and bet on the revival of consumer spending in the coming quarters. Further, the recent steep correction in global soft commodities like crude palm oil and soya have boosted the outlook for these companies’ margins.
Shares of steel stocks were also under pressure as they dominated the list of top laggards in the Nifty50 universe. Investors looked to book profits in cyclical trades amid rising concerns that the recent run-up in the sector will limit upside potential, making risk-reward unfavourable. Shares of , JSW Steel, SAIL and Jindal Steel ended 3-5 per cent lower.
Overall, the breadth of the market was negative as nearly two stocks fell for every one stock that rose on NSE.
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