Sensex Falls Over 150 Points, Reversing Gains In Volatile Trading Session
Indian equity benchmarks fell, reversing gains in opening deals, underscoring the volatility ahead of the Federal Reserve’s May meeting minutes later on Wednesday, likely to support the US central bank’s aggressive rate-hike path.
While the Sensex opened in the green, tracking Asian stocks, which traded mostly in the positive territory, global growth concerns and weak US economic data had weighed on Wall Street on Tuesday.
Those concerns came to the fore ahead of the FOMC (Federal Open Market Committee) minutes later on Wednesday and weighed on Indian stocks, with the Sensex falling over 150 points and the Nifty trading 50 points lower.
That comes after Indian stocks fell in both the trading sessions this week.
Indeed, the BSE benchmark had declined 236 points or 0.43 per cent to settle at 54,052.61 points on Tuesday. The Nifty dropped 89.55 points or 0.55 per cent to end at 16,125.15 points.
Shares of Adani Ports fell nearly 5 per cent after the company reported a 21.78 per cent decline in consolidated net profit.
Capital outflows have not helped investors’ confidence, with the latest stock exchange data confirming that foreign institutional investors (FIIs) offloaded shares worth a net Rs 2,393.45 crore on Tuesday.
“All eyes will be on the FOMC (Federal Open Market Committee) minutes later on Wednesday, which would clarify the Fed’s rate-hike path in the near term. Also, selling by the FII camp continues to be the biggest negative catalyst for Dalal Street,” Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd, told PTI.