Benchmark equity indices Sensex and Nifty faced a downward trend in early trade on Wednesday, influenced by weak global cues, higher crude oil prices, and the outflow of foreign funds. The 30-share BSE Sensex dropped by 281.18 points or 0.38 per cent to 73,622.73, while the NSE Nifty slipped by 93.15 points or 0.41 per cent to 22,360.15.
Among the Sensex constituents, 22 stocks were in the red, with Bharti Airtel, Nestle India, Sun Pharma, and IndusInd Bank leading the losses. However, Ultratech Cement, Tech Mahindra, Axis Bank, and Tata Steel managed to stay in positive territory, defying the overall trend.
On the NSE Nifty, 38 shares were trading in the negative zone, indicating a broad-based decline in the market sentiment. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the rising bond yields in the US were impacting global equity markets. The fading expectations of an interest rate cut by the US Federal Reserve in July, coupled with concerns about inflation due to rising crude oil prices, were contributing to the market uncertainty.
Asian markets, including Hong Kong’s Hang Seng and Japan’s Nikkei 225, were also trading lower, reflecting the overall negative sentiment. The US and European markets ended on a lower note on Tuesday, further adding to the cautious mood in the global financial markets.
Foreign Institutional Investors (FIIs) continued to offload equities, with a net outflow of Rs 1,622.69 crore on Tuesday. Additionally, global oil benchmark Brent crude prices edged higher to USD 88.99 a barrel, adding to the economic concerns. The market closed on a negative note on Tuesday, with the Sensex declining by 110.64 points and the Nifty closing lower as well.