The BSE Sensex, India’s equity benchmark, saw a reversal in its two-day rally, experiencing a volatile trading session, mainly due to selling in IT and technology stocks. Nevertheless, heavy buying in energy, metal, and auto sectors limited the losses.
The 30-share BSE Sensex concluded the day with a decline of 64.66 points or 0.10%, closing at 66,408.39 points. During the session, the index swung between gains and losses. Of its 30 constituents, 14 ended lower, while 16 advanced. The index opened on a positive note, reaching an early high of 66,577.60 points, but later retreated to a low of 66,342.53 points.
The broader Nifty of NSE also experienced a decline, losing 17.35 points or 0.09% to close below the 19,800 level, ending the day at 19,794 points. The Nifty’s range during the session varied between 19,772.65 and 19,843.30 points.
Market breadth remained positive, with 2,168 shares advancing, 1,501 declining, and 123 closing unchanged among the 3,792 stocks traded. Notably, 284 stocks reached their 52-week highs, while 20 stocks touched the year’s lows.
The decline in IT shares, following mixed results from IT giants TCS and Infosys, played a significant role in pulling down key indices. This underwhelming performance of the IT sector was attributed to the lackluster near-term prospects and high-interest rates, according to Vinod Nair, Head of Research at Geojit Financial Services.
Nonetheless, the broader market showed strength, driven by expectations of robust Q2 results and sustained volume demand in India’s operating profit, despite global economic challenges.
The sectoral breakdown saw the BSE IT index falling the most by 1.48%, followed by BSE Teck down by 1.36%. On the positive side, BSE Oil & Gas rose by 1.4%, BSE Energy by 1.16%, BSE Metal by 0.93%, and BSE Power by 0.42%.
Worldwide, shares rose on Thursday ahead of US inflation data release, leading to discussions about future interest rates. Additionally, China’s sovereign wealth fund’s investments in the country’s major banks fueled speculations about its role in supporting mainland markets.
Asian markets, including Japan, China, and Hong Kong, recorded gains, with Hang Seng, Nikkei 225, Kospi, and Shanghai Composite all registering increases.
In France, Germany, and the UK, stock markets were also up ahead of the release of US inflation data.
Foreign Institutional Investors (FIIs) continued to be net sellers, offloading shares worth Rs 421.77 crore on Wednesday, as per data available with BSE.
