Benchmark stock indices Sensex and Nifty fell for the fourth consecutive day on Wednesday as foreign fund outflows and concerns over the steep hike in US H-1B visa fees continue to dent investor sentiment.
Photograph: Francis Mascarenhas/Reuters
The 30-share BSE Sensex dropped 386.47 points or 0.47 per cent to end at 81,715.63.
During the day, it tanked 494.26 points or 0.60 per cent to 81,607.84.
The 50-share NSE Nifty declined 112.60 points or 0.45 per cent to 25,056.90.
Among Sensex firms, Tata Motors, Bharat Electronics, UltraTech Cement, Tech Mahindra, Mahindra & Mahindra, ICICI Bank, Tata Consultancy Services and Axis Bank were the major laggards.
However, Power Grid, Hindustan Unilever, NTPC and HCL Tech were among the gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,551.19 crore on Tuesday, according to exchange data.
“Profit-booking has been observed in Indian markets post-GST reforms, as investors recalibrate valuations and Q2 earnings expectations.
“IT stocks underperformed due to H-1B fee hikes, while US trade rhetoric amid ongoing trade negotiations and weak global cues are prompting cautious investor sentiment,” Vinod Nair, head of research, Geojit Investments Limited, said.
India’s relatively high valuations, coupled with moderation in earnings growth, continue to lead FIIs to trim their positions, Nair added.
In Asian markets, South Korea’s Kospi ended lower while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled in positive territory.
Global oil benchmark Brent crude climbed 0.44 per cent to $67.93 a barrel.
Meanwhile, the rupee recovered from early lows to settle almost flat at 88.72 against the US dollar.
The local unit slumped to 88.80 in early trade but recovered later to hit a day’s high of 88.67 against the US dollar.
