Market benchmark indices declined in early trade on Wednesday, extending the previous day’s losses dragged by a weak trend in IT counters and US equities.
After a flat start to trading, the 30-share BSE Sensex fell 100.87 points to 61,831.60. The NSE Nifty closed 29.1 points down at 18,257.40.
Among Sensex firms, Wipro, Infosys, HCL Technologies, Tata Consultancy Services, Tech Mahindra, Hindustan Unilever, Bajaj Finserv and Bajaj Finance were the major laggards. Gainers included Bharti Airtel, IndusInd Bank, Larsen & Toubro, ITC, UltraTech Cement and State Bank of India.
US market closed down
In Asia, markets in Seoul and Tokyo were trading in the green, while shares in Shanghai and Hong Kong were down. The US market closed down on Tuesday.
Foreign institutional investors (FIIs) were buyers on Tuesday as they bought equities worth Rs 1,406.86 crore, according to exchange data. “When a batsman is nearing a century, he may be stuck in the ‘nervous nineties’ for a while. It appears that the market is in a similar situation, reaching a new all-time high.
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Near-term issues may weigh on global markets
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “Even though conditions are favorable for a new record, there are near-term issues such as the US debt ceiling impasse, which could put pressure on global markets in the near term.”
Meanwhile, global oil benchmark Brent crude climbed 0.16 per cent to $75.03 per barrel. On Tuesday, the 30-share BSE benchmark had closed 413.24 points, or 0.66 per cent, down at 61,932.47. The Nifty closed at 18,286.50, down 112.35 points or 0.61 per cent.
“The caution is likely to continue and profit-booking could be seen in the next few sessions as investors focus on the global mood,” said Prashant Tapase, Senior VP (Research), Mehta Equities Ltd.