Benchmark stock market indices experienced a downturn for the third consecutive session on Wednesday, primarily driven by a decline in information technology shares amidst a broader global market slide. The S&P BSE Sensex witnessed a drop of 535.88 points, settling at 71,356.60, while the NSE Nifty50 slid by 148.45 points, concluding at 21,517.35. Today's trading session saw weakness across broader market indices.
Notably, the Nifty IT index emerged as the major loser, experiencing a decline of over 2.5 per cent, while the Nifty Metal index also fell by over 1.8 per cent. In contrast, Nifty Realty stood out as the only sectoral index to gain over 1.1 per cent, providing some support.
Among the top five gainers on the Nifty50 were Bajaj Auto, Adani Enterprises, Adani Ports, Cipla, and ITC. Conversely, the top losers included Hindalco, JSW Steel, Tata Steel, LTIM, and Tech Mahindra.
The decline in IT stocks was attributed to weakened global sentiments influenced by US job data and the minutes of the US Federal Reserve's meeting. These factors collectively diminished optimism regarding potential interest rate cuts in the near term.
Since Tuesday, domestic markets have faced selling pressure after a record rally over the past two months. Analysts suggest the possibility of further consolidation in benchmark indices in the near term, given that positive developments were already factored into the previous rally.
Looking ahead, the financial results for the third quarter of the current fiscal year are anticipated to play a crucial role in shaping the trajectory of domestic markets over the next month. Additionally, investors and traders will closely monitor evolving global trends, inflation, and the upcoming Lok Sabha election later this year.
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