Indian Stocks Record Its Worst Performance On Wednesday In Two Month, Slide Over 1%
As investors await a key policy decision from the US Federal Reserve later in the day, Indian equity indices closed in the red for the second straight session on Wednesday, dragged by index heavyweight HDFC Bank after the country's top private lender flagged a hit to its asset quality post its merger with HDFC.
The 30-share BSE benchmark Sensex declined 796 points or 1.18 per cent to settle at 66,800. The broader NSE Nifty Future plunged 207 points or 1.02 per cent to end at 19,972.
Meanwhile, the market capitalisation of all listed companies on BSE declined by Rs 2.34 lakh crore to Rs 320.66 lakh crore. From the Sensex pack, HDFC Bank, JSW Steel and Reliance Industries were the top laggards, falling 2-4 per cent. UltraTech Cement, Maruti, Tata Steel and Wipro also ended lower, while Power Grid, Asian Paints, Sun Pharma, Axis Bank and NTPC closed higher.
The market breadth was skewed in the favour of the bears. About 2,207 stocks declined, 1,476 gained, and 120 remained unchanged on the BSE.
FII and FPIs, on Wednesday, saw a net sales of Rs 3110.69 crore in the cash segment. A total of Rs 18879.86 crore was sold against a total purchase of Rs 15769.17 crore. Domestic institutional investors saw net sales of Rs 573.02 crore in the cash segment. A total of Rs 10625.36 crore was sold against a total purchase of Rs 10052.35 crore.
Meanwhile, The domestic markets remained under pressure due to rising US bond yields and a stronger greenback. Concerns reigned over upcoming FED policy, interest rate trajectory and rising oil prices, Bank Nifty underperformed on Wednesday due to the rising cost of funds and reduction in deposits leading to moderation in net yield.
Technically, the important key resistances placed in August Nifty future are at 19,972 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 20,008 – 20,108 levels. Immediate support is placed at 19,880 – 19,808 levels.
