Markets drop for a 6th day; Sensex loses 123 points; Nifty down 27

However, recover over a per cent from the day's low thanks to a recovery in global markets

Benchmark indices Sensex and Nifty declined for the sixth consecutive session on Wednesday as global trade war concerns continued to weigh on sentiments. The indices, however, rebounded over a per cent from the day’s lows, supported by positive global cues.

 

The Sensex ended the session at 76,171, a decline of 123 points or 0.16 per cent, while the Nifty closed at 23,045, a drop of 27 points or 0.1 per cent. The six straight days of decline is the longest losing streak for the Sensex since February 28 and for the Nifty since November 18. The Sensex and Nifty declined by 3 per cent in the last six sessions, nearing their lowest levels in eight months. In intraday trade, the Sensex fell to 75,388.39, while the Nifty dropped to 22,798.

 

 

The BSE-listed firms’ total mcap declined ₹1.1 trillion to ₹407 trillion. The Nifty Midcap 100 and the Nifty Small Cap 100 declined 0.26 per cent. In intra-day, the smallcap index slipped into “bear market territory” as it extended its decline to 20 per cent from all-time highs.

 

FPIs on Wednesday sold shares worth ₹5,000 crore, taking their YTD selling tally near ₹1 trillion mark. Investors are worried that India could be impacted by the reciprocal tariffs, which US President Donald Trump may reveal this week against countries that tax US imports.

 

“The market saw a slight recovery from the sharp intraday declines; however, overall sentiment remained weak due to elevated broader market valuations and muted Q3 earnings growth,” said Vinod Nair, head of research at Geojit Financial Services.

 

Concerns over excessive valuations are expected to sustain the ongoing consolidation phase. Investor confidence was further undermined by the Fed's statement that it is ‘not in a hurry to lower interest rates’ and intends to ‘pause rate cuts to assess further progress in inflation’. Additionally, uncertainty regarding the impact of metal tariffs added to market caution," said Vinod Nair, head of research at Geojit Financial Services.

 

Going forward, the global news flows will give markets further direction. More than half of Sensex stocks declined. Reliance Industries, which fell 1.5 per cent, was the biggest drag on Sensex, followed by Mahindra & Mahindra, which fell 3.2 per cent. The market breadth was weak, with 2,435 stocks declining and 1,534 advancing.