The BSE Sensex fell 239.31 points, or 0.29%, to close at 81,312.32, while the NSE Nifty declined 73.75 points, or 0.30%, to settle at 24,752.45.
The market capitalization of all listed companies on the BSE decreased by Rs 75,151 crore to Rs 443.71 lakh crore.
Sector Watch
Shares of conglomerate ITC fell 3% after British American Tobacco announced plans to pare its stake in the company by 2.6% via a Rs 15,000 crore block deal.
In contrast, state-run insurer Life Insurance Corporation (LIC) jumped 8.2% after posting a 38% year-on-year rise in consolidated net profit to Rs 19,039 crore for the March quarter. The company also declared a final dividend of Rs 12 per share for FY25, highlighting its improved profitability and capital strength.Among the 30 Sensex constituents, ITC, IndusInd Bank, Nestle India, UltraTech Cement, Mahindra & Mahindra, Power Grid, Asian Paints, and Sun Pharma were the top losers, shedding between 1% and 3.2%.Index majors HDFC Bank and Reliance Industries also edged lower, down 0.2% and 0.8%, respectively.
Meanwhile, broader markets outperformed, with the Nifty Smallcap 100 rising 0.3% and the Nifty Midcap 100 closing flat.
Expert View
The domestic indices remained rangebound with a negative bias, primarily due to the lack of support from FIIs and prevailing premium valuations, said Vinod Nair, Head of Research, Geojit Investments, adding that a lingering concern over India-U.S. trade relations following the end of the 90-day pause period continues to pose an external risk.
“On the domestic front, key economic indicators such as an improved monsoon forecast, a benign inflation outlook, and expectations of a stronger Q4GDP may help cushion downside risks. However, earnings visibility needs to improve in tandem with the macros, which is vital for stability in the direction,” said Nair.
Global Markets
Global equities were mixed and the dollar held firm on optimism around U.S.-EU trade talks, with investor focus shifting to Nvidia’s earnings due later in the day.
Market sentiment improved after U.S. President Donald Trump described the EU’s offer to begin trade discussions as a “positive step,” easing concerns over his earlier threat to impose 50% tariffs on European imports. However, fiscal worries lingered as long-term bond yields climbed following a weak auction of Japan’s 40-year government bonds, highlighting growing concerns over sovereign debt in advanced economies.
In Europe, stocks saw modest gains in early trading—Germany’s DAX rose 0.2%, France’s CAC 40 gained 0.3%, and the UK’s FTSE 100 advanced 0.2%. U.S. futures edged lower, with the S&P 500 down 0.1% and the Dow slipping 0.2%.
Asian markets were subdued. Japan’s Nikkei 225 was flat, Hong Kong’s Hang Seng lost 0.5%, and China’s Shanghai Composite ended little changed.
In the U.S., Wall Street rebounded on Tuesday after the long Memorial Day weekend, with the S&P 500 jumping 2.1% in its first session since Trump’s tariff reprieve. Treasury yields retreated, easing pressure on equities. The 10-year yield dipped to 4.47% from 4.51%, reflecting concerns over the mounting U.S. debt burden.
Analysts expect the upcoming Fed meeting minutes to offer further cues for global markets, amid persistent inflationary and fiscal risks.
Crude Impact
Oil prices held steady on Wednesday as the U.S. moved to block Chevron from exporting crude from Venezuela, though expectations of an OPEC+ decision to raise output in July limited further gains.
By 0852 GMT, Brent crude edged up 6 cents, or 0.1%, to $64.15 a barrel, while U.S. West Texas Intermediate rose 8 cents, or 0.2%, to $60.99.
Rupee vs Dollar
The Indian rupee ended almost unchanged at 85.36 against the U.S. dollar on Wednesday, slightly weaker than the previous close of 85.33. Month-end dollar demand from importers weighed on the currency early in the session, pushing it down to 85.70, but it later recovered most losses as regional currencies strengthened and the dollar index eased.
The dollar index, which measures the greenback against six major currencies, remained steady after a 0.6% gain in the previous session.
(with inputs from agencies)
