Indian equity market closed in the red for the sixth straight session with benchmark indices - Sensex and Nifty - falling nearly 1% each on Wednesday.
Tracking the weak trend in equities, the market capitalisation of BSE-listed firms eroded by Rs 3,23,123.54 crore to Rs 2,73,72,988.06 crore.
Indian equity markets, which have been driven by strong FII inflows and good quarterly numbers, could see consolidation this week in absence of any major triggers.
The rally was mainly backed by foreign portfolio investments amid expectations of a less aggressive rate hike by the Fed in its coming meet.
HDFC Bank reported a mixed set of numbers with double digit credit growth in Q1 FY23, but a rise in bad loans sequentially. The weekly range for the Nifty is 15858-16275.
The 30-share BSE benchmark declined 330.14 points to 54,151.70 in early trade. The broader NSE Nifty went lower by 102.75 points to 16,117.85.
At the interbank foreign exchange, the rupee opened weak at 79.30 against the American dollar and slipped further to quote at 79.33, a decline of 7 paise over its last close.
Apart from TCS, market trends will be driven by some important numbers this trading week that include HCL Tech, Mindtree, Larsen & Toubro Infotech, ACC and Federal Bank.
Amid these challenges, certain brokerages expect further weakness in the local unit in the coming months.
Among consumer durables, Dixon Technologies and TTK Prestige corrected 11% each during the fortnight under review.
The 30-share BSE Sensex was trading with a jump of 781.52 points to 53,509.50. The NSE Nifty also gained 228.2 points to 15,927.45.
One indicator on FIIs has raised hopes of market participants of a bounce or a relief rally in the market, which has fallen for six straight sessions through June 17.
However, a rise in the FFR means foreign institutions could sell more, going forward, with their risk-free rate of return from EMs like India reducing.
FIIs sell over Rs 4,000 crores of shares ahead of the Federal Reserve policy meeting on June 14-15.
The Dow closed down 2.5 per cent or 880 points and the Nasdaq 3.5 per cent, or 414 points, Friday after data showed US CPI inflation in May rose 50 bps more than expectations to 8.6 per cent.
Rising inflationary fears gripped the market, with Nifty and Sensex ending lower on cues from the overnight fall in the US markets and the rupee plunging to a new low.
Analysts also expect RBI to have intervened in the currency market to have stemmed the fall in the local unit , which hit a low of 77.73 intraday .
Markets could correct 5-8% if selling continues apace, say analysts; nearly half of Nifty shares fell due to FII selling
NSE Nifty dived 359 points, while BSE Sensex tumbled 1,158 points
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