D-Street Ends 4-Day Winning Streak
The Indian equity markets snapped their 4-day winning streak as they added losses in the day's trade on Wednesday, June 16 taking cues from weak Asian markets, and after Oxford Economics - a worldwide forecasting agency stated that a rise in retail inflation in May could prompt the RBI to reconsider its focus on growth concerns, said experts.
The frontline S&P BSE Sensex slipped 271.07 points and closed at 52,501.98 with declines in 22 scrips out of 30 in the pack. Shares of Power Grid Corp shed over two per cent, while those of Reliance Industries, IndusInd Bank, and Larsen dipped over a per cent each.
Similarly, the Nifty-50 index saw a decline of 101.70 points and wrapped the session at 15,767.55.
Among the sectors, the Metal sector stood as the worst performer among all other sectors as the index shed nearly three per cent in the day's trade. Shares of SAIL dipped over four per cent, while those of Tata Steel, JSW Steel, and Jindal Steel slipped 2-3 per cent each.
In the overall market breadth on Wednesday, 1791 shares declined, 1441 shares advanced, and 123 shares remained unchanged.
Globally, the markets today were trading on the sidelines ahead of the U.S Fed decision which is likely to be on the investors' radar, said experts.
Among the global markets, the S&P 500 and the Dow fell as markets awaited fresh direction from the US Federal Reserve on Wednesday. Asian markets were also trading mostly in the red with investors wary of any hint of hawkishness from the U.S. Federal Reserve.
"US Fed is not expected to take action this time in its MPC meet but investors would keep an eye on any hint at its future tapering plans given the recent surge in consumer prices," said Siddhartha Khemka of Motilal Oswal Financial Services.
However, the overall sentiment and future projections remain positive on account of a strong earnings session from India Inc which defeated the analysts' estimates, coupled with a speedy vaccination drive and decline in daily COVID-19 cases in the country.
"The further direction of the domestic markets would depend on the monsoon, opening up of the economy in a phased manner and the pace of vaccination going forward," Khemka added.
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