Sensex and Nifty Drop; US Fed Meeting is in Focus

Wednesday’s opening deals saw a slight decline in Indian equities indexes, extending their decline for a third straight session amid choppy trading.

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Wednesday’s opening deals saw a slight decline in Indian equities indexes, extending their decline for a third straight session amid choppy trading. The local indices got off to a flat start, according to trends on the Nifty Futures on the Singapore Exchange (SGX Nifty).

As investors anticipated the magnitude of yet another abrupt U.S. interest rate hike, stocks in Asia were mostly weaker. In its previous policy, the central bank increased its benchmark rate by 50 basis points (bps), and it is anticipated that it would do so again in July’s policy result, which is coming later today.

The broader NSE Nifty slipped 9 points or 0.05 percent lower to trade at 16,475, while the 30-share BSE Sensex dropped 27 points or 0.05 percent to 55,241 in early trade.

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The Nifty Midcap 100 and small-cap indexes also experienced declines of 0.21 and 0.34 percent, respectively, in mid- and small-cap equities.

The National Stock Exchange’s 15 sector indicators, which were gathered, were trading in the red in 12 of them. NSE platform underperformed by 1.04 percent and 0.33 percent, respectively, in the sub-indices Nifty Consumer Durables and Nifty Financial Services.

In terms of individual stocks, Bajaj Finserv was the biggest loser on the Nifty, with the stock falling 2% to 13,046.80. Among the laggards were JSW Steel, Bharti Airtel, Kotak Mahindra Bank, and Apollo Hospitals.

1,150 equities on the BSE were increasing while 1,381 were decreasing, resulting in a slightly weaker overall market breadth.

Bajaj Finserv, Airtel, Kotak Bank, Dr. Reddy’s, Bajaj Finance, Titan, Reliance Industries, Tech Mahindra, Infosys, M&M, ITC, and IndusInd Bank were some of the top losers on the 30-share BSE index.

The largest domestic financial investor and insurer in the nation, Life Insurance Corporation of India (LIC), saw a 0.17 percent decline in share price to trade at 674.20.

L&T, Sun Pharma, Hindustan Unilever, UltraTech Cement, HCL Technologies, PowerGrid, Asian Paints, Nestle India, TCS, Tata Steel, Maruti, and Wipro, on the other hand, were all trading in the black.

In addition, Zomato’s shares recovered 3.60 percent to trade at 43.15 after plunging for two straight days after a one-year lock-in period for promoters, employees, and other investors expired.

Nifty dropped 147 points or 0.88 percent to end the day at 16,484 while the Sensex fell 498 points or 0.89 percent to conclude at 55,268.