Benchmark indices were listless on Wednesday moving in a narrow range on either side of the flatline as investors looked for cues.
The S&P BSE Sensex, after oscillating in a 600-point range, ended at 73,877, down 27 points or 0.04 per cent. The Nifty50, on the other hand, closed at 22,435, down 19 points or 0.08 per cent.
While Shriram Finance, Divis Labs, NTPC, TCS, Bharti Airtel, Axis Bank, Tech M, and Bajaj Finance led the gains, Nestle India, Bajaj Auto, Dr Reddy’s Labs, Kotak Bank, Britannia, HDFC Life, Titan Company, JSW Steel, Cipla, Maruti Suzuki, IndusInd Bank, and Adani Enterprises dragged the most.
In the broader markets, the BSE MidCap index hit a new record high before closing 0.6 per cent higher, while the BSE SmallCap index advanced 1.2 per cent.
Among sectors, the Nifty Realty index fell 2.6 per cent, and the Nifty FMCG slipped 0.4 per cent. On the upside, the Nifty PSU Bank added 1.8 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “the rising bond yields in the US (the 10-year is at 4.36%) is impacting equity markets. The rate cut from the Fed expected in July is fading now since the labour market continues to be tight and the rising crude (Brent at $ 89) is feared to add to inflation further constraining the ability of the Fed to cut. Even though the Fed chief has been sounding dovish recently, the market is now less optimistic about 3 rate cuts in 2024. This will continue to be a drag on equity markets globally.”
Global Cues
Overnight, in the US, Dow and Nasdaq slipped 1 per cent after data showing strong labour demand raised fears of a delayed rate cut by the Fed. The US 10-year bond yield rose to 4.40 per cent.
Nearer home, markets in Asia traded with notable losses. Japan’s Nikkei and Malaysia’s Kospi dipped over 1 per cent each, while Taiwan was down 0.5 per cent.
Among other assets, Gold futures logged new record highs, as the commodity topped the $2,300 per ounce.
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