Equity benchmark indices declined in early trade on Wednesday due to weakness in banking, financial and metal stocks amid unabated foreign fund outflows. Investors preferred to remain on the sidelines ahead of the US Federal Reserve's interest rate decision, traders said.
The 30-share BSE Sensex declined 193.99 points to 63,680.94. The Nifty slipped 47 points to 19,032.60.
Among the Sensex firms, JSW Steel, Bharti Airtel, Kotak Mahindra Bank, HDFC Bank, Asian Paints, Tata Steel, Power Grid and Nestle were the major laggards. Mahindra & Mahindra, Wipro, HCL Technologies, Bajaj Finserv and Tata Motors were the major gainers.
Asian and US markets
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the green. The US markets ended in positive territory on Tuesday.
Global oil benchmark Brent crude dipped 0.05 per cent to USD 87.41 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 696.02 crore on Tuesday, according to exchange data.
"It is important to understand that equity markets globally are being impacted more by the spike in US bond yields rather than the Israel-Hamas conflict. The US 10-year bond yield above 4.9 per cent will continue to be a major headwind for stock markets, particularly for those in emerging markets. Sustained selling by FIIs is likely to continue weighing on markets," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Rupee falls against dollar
The rupee depreciated 3 paise to 83.27 against the US dollar in the morning session on Wednesday, tracking a strong American currency overseas and muted trend in domestic equities. Persistent foreign fund outflows also weighed on the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 83.26 against the dollar. It touched a low of 83.27 in initial deals, registering a fall of 3 paise over its previous close.
(With inputs from PTI)
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