- BSE Sensex closed at 9,610.41 points
- NSE Nifty closed at 17,807.65 points
- Weak global cues weighed on investor sentiment
new Delhi. Domestic stock markets fell for the second consecutive day on Wednesday and the BSE Sensex fell below the 60,000-mark, down 566 points. Markets fell on heavy selling in bank and IT stocks amid a weak global trend. The 30-share Sensex ended 566.09 points, or 0.94 per cent, down at 59,610.41 points. At one point during the trading, it had fallen 666.66 points to 59,509.84. Out of 30 Sensex stocks, 20 were in losses. The Nifty of the National Stock Exchange also closed at 17,807.65, down 149.75 points, or 0.83 per cent.
The impact of the Federal Reserve’s comment
According to analysts, there was a fall in interest rate related stocks. The reason for this is the remarks of L. Brainard, the governor of the US Federal Reserve. His remarks have fueled fears that the US central bank will aggressively raise interest rates. Increasing sanctions on Russia has also had an effect. Ajit Mishra, Vice President (Research), Religare Broking Ltd. said, “The market declined for the second consecutive day. Weak global cues and aggressive stance by the US Federal Reserve and fears of further sanctions on Russia weighed on investor sentiments.
Indices of IT stocks also softened
Vinod Nair, Head of Research, Geojit Financial Services, said, “Depreciation in HDFC Group shares amid a weak global trend and weak performance by the IT sector on apprehension of poor quarterly results, weighed on key indices. The market may remain volatile before the announcement of monetary policy of RBI. The meeting of the Monetary Policy Committee of the Reserve Bank began on Wednesday. The decision taken in the meeting will be announced on April 8. The governor of the Federal Reserve said that the central bank is ready to raise interest rates again after March and may make a decision on reducing bonds in May meeting. Among the banks Kotak Bank, Axis Bank and IndusInd Bank were among the losers. Apart from this, Reliance Industries, Mahindra & Mahindra, Dr Reddy’s, Wipro, Bajaj Finance and Titan also declined. On the other hand, NTPC (2.61 per cent), Tata Steel (1.94 per cent), PowerGrid (1.52 per cent) and Bharti Airtel (1.17 per cent) were among the gainers. Nestle, Larsen & Toubro, SBI and Asian Paints were among the gainers.
The environment deteriorated due to the fall in the global market
Mitul Shah, Head of Research, Reliance Securities said, Tuesday’s fall in the US stock market had an impact on the domestic market. Investors are apprehensive that the Federal Reserve may hike interest rates substantially.” In other Asian markets, Hong Kong’s Hang Seng, Japan’s Nikkei and South Korea’s Kospi were among the losers, while China’s Shanghai Composite ended with gains. Meanwhile, international oil benchmark Brent crude rose 0.93 per cent to $107.6 a barrel.