Indian equity indices decline for third day amid global market downturn

  • Stock Market News
Indian equity indices decline for third day amid global market downturn
Credit: © Reuters.

Thursday saw India's key equity benchmark indices, the Sensex and Nifty, fall for the third consecutive day, with a nearly 1% drop primarily driven by investors reducing their stakes in auto, banking, and financial shares. The BSE Sensex plunged 570.60 points or 0.85%, settling at 66,230.24, while the Nifty declined 159.05 points or 0.80% to end at 19,742.35.

This downturn reflects a broader trend in the global stock market, which has also seen a decrease after the US Federal Reserve indicated its plans to increase rates once more this year to combat inflation. In particular, Public Sector Undertaking (PSU) Banks and mid and small-cap stocks were heavily affected due to inflated valuations and concerns over yield moderation. Rising oil prices and unpredictable rainfall have also led investors to exercise caution in the market.

ICICI Bank emerged as the most significant loser among the Sensex stocks, with a decline of 2.81%. Other companies that saw losses included Mahindra & Mahindra, State Bank of India, UltraTech Cement, IndusInd Bank, Kotak Mahindra Bank, Tata Motors (NYSE: TTM ), Bajaj Finserv, Axis Bank, and Power Grid. On the other hand, Tech Mahindra, Bharti Airtel, Infosys (NS: INFY ), Asian Paints, Hindustan Unilever (LON: ULVR ), Larsen & Toubro and Titan were among the gainers.

Foreign institutional investors (FIIs) sold equities worth Rs 3,110.69 crore on Wednesday according to exchange data. International markets in Seoul, Tokyo, Shanghai and Hong Kong ended in negative territory as well. European markets also followed this negative trading trend.

The US Federal Reserve maintained its key interest rate for the second time in its last three meetings, signaling a moderation in its anti-inflationary measures as price pressures have eased. However, Federal officials also indicated their intention to raise rates once more this year.

The global oil benchmark, Brent crude , fell 0.81% to USD 92.77 a barrel. This decline follows a previous drop where the BSE benchmark tumbled 796 points or 1.18% to settle at 66,800.84 on Wednesday, and the NSE Nifty declined 231.90 points or 1.15% to end below the 20,000 mark at 19,901.40.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or