The 30-share BSE Sensex dropped 427 points, or 0.53%, to close at 79,942, while the broader NSE Nifty fell 126 points, or 0.51%, to end at 24,340.
The Nifty 50 has lost nearly 6% in October so far, and is on track for its worst monthly performance since March 2020, when lockdown-related restrictions triggered a meltdown across global equity markets.
From the Sensex pack, Infosys, ICICI Bank, Kotak Mahindra Bank, M&M, SBI and HCL Tech were the top laggards, falling 1-2%. On the flip side, Maruti Suzuki, IndusInd Bank, Adani Ports, ITC, and UltraTech Cement closed with gains.
Car maker Maruti Suzuki India, which fell 3.8% in the last session due to a revenue slowdown and profit drop in the September quarter, rose 2%.
Marico shares closed 3.5% higher after the company exceeded second-quarter profit estimates, supported by recent price hikes.In sectoral performance, Nifty Financials, which had gained around 2.6% over the previous two sessions, dropped 1.3% on Wednesday, leading the sectoral declines. Nifty Pharma, Healthcare, and Consumer Durables also fell over 1%.However, in the broader market, Nifty Smallcap100 rose 1.05%, while Nifty Midcap100 edged up by 0.16%.
Despite the dip in equity markets, the market capitalization of all listed companies on the BSE increased by Rs 1.25 lakh crore, reaching Rs 434.86 lakh crore. Market breadth favored the bulls, with 2,892 stocks advancing, 1,040 declining, and 79 remaining unchanged on the BSE.
Expert Views
“The domestic market remains cautious due to aggressive selling by FIIs. Positively, strong domestic inflows are supporting market resilience though volatility has markedly increased. Other EMs are also consolidating in anticipation of upcoming US economic data releases, elections, and the FOMC interest rate decision. Considering the weak Q2 domestic earnings and muted commentary, India’s premium valuations are moderating,” said Vinod Nair, Head of Research, Geojit Financial Services.
Rupak De, Senior Technical Analyst at LKP Securities, said, “Nifty remained volatile throughout the day, trading within a range of 24,300 to 24,500. On the hourly chart, Nifty encountered resistance around the 50 EMA, leading to a correction toward 24,300. Sentiment may stay sideways as long as Nifty remains within the range of 24,250 to 24,500. A decisive breakout from this range is likely to give direction to Nifty. On the lower end, supports are placed at 24,250 and 24,000, while resistances are seen at 24,500 and 24,750.”
Global Markets
European and Asian shares slipped on Wednesday on uncertainty surrounding a closely contested US election, while gold hit an all-time high and the dollar hovered near a three-month high.
With tepid appetite for risk, the Euro STOXX 600 fell 0.6% ahead of a slew of key economic data. Preliminary figures for third-quarter GDP in the euro zone are due later in the day.
Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan fell to a one-month trough and were last down 0.7%, tracking a decline in Chinese assets.
Crude Oil
Oil prices held steady near one-month lows on Wednesday, after sliding in the previous two sessions, as markets weighed a potential ceasefire between Israel and Hezbollah and rising OPEC+ crude supplies against a possible drop in US fuel stocks and demand concerns.
Brent crude futures gained 38 cents, or 0.5%, to $71.50 a barrel by 0957 GMT. U.S. West Texas Intermediate crude futures edged up 35 cents, or 0.5%, to $67.56 per barrel.
Rupee vs Dollar
The Indian rupee ended largely unchanged on Wednesday, after falling to a record low on importers’ dollar demand and outflows from local equities in the run-up to the US presidential election, while the central bank’s intervention helped contain the fall.
The rupee ended at 84.0775 to the U.S. dollar against 84.0750 at the previous close. The currency moved in a three-paise range, and briefly hit a lifetime low of 84.09 per dollar.
(With inputs from agencies)