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Stock market benchmark indices fell in initial trade on Wednesday tracking weak global trends ahead of the release of minutes of the Federal Open Market Committee (FOMC) meeting.
The BSE Sensex fell 329.12 points to 60,343.60 after a weak beginning. The NSE Nifty declined 97.3 points to 17,729.40.
From the Sensex pack, IndusInd Bank, Wipro, UltraTech Cement, Power Grid, Bajaj Finserv, HCL Technologies, Tata Motors, Infosys, NTPC and Bajaj Finance were the major laggards.
Maruti and Larsen & Toubro were the winners.
In Asian markets, South Korea, Japan, China and Hong Kong were trading lower.
The U.S. markets had ended significantly lower on Tuesday.
“U.S. stocks tumbled led by growing concerns that the Federal Reserve will keep interest rates higher for longer,” said Mitul Shah, Head of Research–Institutional Desk, Reliance Securities Ltd.
The BSE benchmark had edged down 18.82 points or 0.03% to settle at 60,672.72 on Tuesday. The Nifty slipped 17.90 points or 0.1% to end at 17,826.70.
International oil benchmark Brent crude declined 1.21% to $83.01 per barrel.
“The U.S. macro data continues to dictate equity markets globally. The U.S. markets reacted sharply negatively to the series of economic data indicating that the process of disinflation is slow and, therefore, the Fed will have to continue raising rates longer than expected earlier.
“This pushed up the 10-year bond yield sharply to 3.95% and stocks fell sharply. These negative U.S. equity market trends are impacting equity markets everywhere and India cannot be an exception to this trend at least in the near term,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign Portfolio Investors (FPIs) bought shares worth ₹525.80 crore on Tuesday, according to exchange data.
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