Domestic equity benchmarks traded lower in early deals on Wednesday as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision amid mixed global cues.
The Sensex declined as much as 462.44 points, or 0.63 per cent, to 72,605.37, while the Nifty fell 175.65 points, or 0.77 per cent, to 22,600.
The indices had opened at 72,965.38 and 22,690.45, respectively.
Among sectoral indices, Nifty Consumer Durables was the biggest loser, falling 1.55 per cent, followed by Nifty Metal at 1.34 per cent and Nifty Auto, which declined more than 1 per cent.
Nifty PSU Bank fell 0.94 per cent, while Oil & Gas, Realty and FMCG traded lower.
Healthcare and pharmaceutical stocks were among the few gainers. Nifty Pharma rose 0.16 per cent, while Nifty Media advanced 0.74 per cent.
Investors are closely tracking the RBI’s monetary policy decision, along with crude oil prices, foreign portfolio flows, the rupee and the central bank’s assessment of the growth-inflation outlook.
Analysts said the market’s recent recovery could face headwinds from elevated Brent crude prices and continued foreign portfolio outflows.
Domestic liquidity and expectations of strong second-quarter earnings, however, could provide support.
Market participants are awaiting the RBI Governor’s comments on interest rates and the emerging growth-inflation scenario.
Analysts said the policy stance could influence market direction, particularly amid rising US Treasury yields and a stronger dollar.
Asian markets traded mixed as investors assessed global cues, US yields and geopolitical tensions.
US equities closed higher on Tuesday as oil prices and Treasury yields eased.
Crude oil prices rose amid possible supply disruptions and attacks on Saudi Arabia, while rising Middle East exports limited gains.
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