New Delhi: Benchmark equity indices Sensex and Nifty fell in early trade on Wednesday, snapping a two-session rally as rising crude oil prices, continued foreign fund outflows and caution ahead of the Reserve Bank of India’s monetary policy decision weighed on sentiment.
Follow The PSUWatch Channel on WhatsApp
The 30-share BSE Sensex dropped 460 points to 72,599.05 in early trade, while the NSE Nifty declined 164.80 points to 22,610.85.
Among Sensex stocks, Titan, Asian Paints, Bharat Electronics, Maruti Suzuki, Axis Bank and Mahindra & Mahindra were among the major laggards. Bajaj Finance and Bharti Airtel traded in the green.
Crude oil prices added to market concerns, with Brent crude, the global benchmark, rising 1.01 percent to USD 101.6 per barrel.
"Brent crude is back above USD 101 and there are no signs of any reversal in FPI outflows. Domestic liquidity and expectations of good Q2 numbers are supporting the market. The focus of the market today will be on the monetary stance and the message from the RBI Governor," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) sold equities worth Rs 2,961.30 crore on Tuesday, according to exchange data.
"Geopolitical risks remain elevated, while crude oil prices have rebounded modestly from recent lows. WTI crude is trading near USD 90 a barrel, while Brent remains above USD 100. The Reserve Bank of India's Monetary Policy Committee decision due later today is likely to be the key domestic catalyst," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Asian markets were largely weak, with South Korea's Kospi, Japan's Nikkei 225 and Hong Kong's Hang Seng trading lower. US markets, however, ended higher on Tuesday.
Follow PSU Watch on LinkedIN
The decline came after two consecutive sessions of gains. On Tuesday, the Sensex surged 685.34 points, or 0.95 percent, to close at 73,067.81, while the Nifty advanced 220.35 points, or 0.98 percent, to 22,776.10.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated.)