NEW DELHI: Domestic equity market snapped its six-day winning streak on Wednesday as high valuation concerns and weak global signal ahead of minutes of the US Federal Reserve’s recent meeting weighed down on investors’ sentiments and they rushed to book profit.
In the highly volatile session, the NSE Nifty50, during the first half of the trading session, touched a record high but closed sharply lower at the end. Dragged by IT and PSU stocks, the 50-share benchmark closed at 22,055.05 level, down 141.90 points or 0.64% while the 30-share BSE Sensex ended lower by 434.31 points or 0.59% at 72,623.09 level.
In the broader market, the Nifty Small Cap 100 fell 1.04% and the Nifty Midcap 100 indexes closed 1.25% lower.
“The Indian market is facing stiff resistance at higher levels; the valuation of a broader index is at a significant premium, leading to an unfavourable risk reward, which influences investors to book profits,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Global markets traded cautiously awaiting the US Fed minutes. Concerns lingered since investors were heavily betting on a US Fed rate cut, which is put at risk by January’s higher-than-expected inflation,” added Nair. Investors would be keeping a close tab on any clues regarding the timing of the first interest rate cut. Among sectoral indexes, only Nifty PSU Bank and Realty indices closed in green.
IT, PSU stocks drag down domestic indices
Dragged by IT and PSU stocks, the 50-share benchmark closed at 22,055.05 level, down 141.90 points or 0.64% while the 30-share BSE Sensex ended lower by 434.31 points or 0.59% at 72,623.09 level