Sensex, Nifty slide for 2nd day

BSE Sensex

 BSE Sensex 


HDFC duo and RIL accounted for most of the benchmark losses; Weaker Rupee adds to the woes

Mumbai: Equity benchmarks buckled under selling pressure for the second straight day on Wednesday, weighed by banking and finance counters, as global sentiment remained risk-averse amid spiking US bond yields and inflation concerns.

A depreciating rupee, which tumbled for the fourth session on the trot, also took a toll on investor confidence, traders said. The 30-share BSE Sensex opened weak and extended its losses, before staging a comeback in late-afternoon trade to close at 59,413.27, still down by 254.33 points or 0.43 per cent. Similarly, the broader NSE Nifty declined 37.30 points or 0.21 per cent to finish at 17,711.30.

HDFC was the top laggard on the Sensex chart, shedding 1.96 per cent, followed by Kotak Bank, Asian Paints, UltraTech Cement, HUL, HDFC Bank and Tech Mahindra. The HDFC duo and Reliance Industries accounted for most of the benchmark's losses. On the other hand, NTPC, PowerGrid, Sun Pharma, SBI, Titan and Tata Steel were among the gainers, rallying as much as 6.52 per cent.

"Domestic market started on a very negative trend due to global sell-off on Tuesday and high crude prices. Spiking US treasury yields and slowing economy were impacting growth stocks. During the day, European and Asian markets recovered and crude prices stabilised. Indian growth-oriented sectors like energy, metals and pharma also recovered strongly but selling continued in other sectors like private sector banks and consumption," said Vinod Nair, head (research) at Geojit Financial Services.

S Ranganathan, head (research) at LKP Securities, adds: "Markets are wary of inflation on the back of supply side disruptions and higher commodity prices. As China pulls back on the back of power shortages, export opportunities are seen opening up for several Indian companies with the PLI schemes providing the catalyst. As the gap between growth and value stocks widen, we are witnessing sector rotation in several pockets."

Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 1,957.70 crore, as per exchange data.

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