Stock markets decline in early trade on foreign capital outflows, Rupee falls against dollar
Benchmark equity indices fell in early trade on Wednesday due to weakness in banking, financial and metal stocks amid unabated foreign fund outflows. Investors would prefer to stay on the sidelines ahead of the US Federal Reserve’s interest rate decision, traders said.
The 30-share BSE Sensex declined 193.99 points to 63,680.94. The Nifty slipped 47 points to 19,032.60.
Among the Sensex firms, JSW Steel, Bharti Airtel, Kotak Mahindra Bank, HDFC Bank, Asian Paints, Tata Steel, Power Grid and Nestle were the major laggards. The major businesses were Mahindra & Mahindra, Wipro, HCL Technologies, Bajaj Finserv and Tata Motors.
Asian and US markets
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong traded in the green. US markets ended in positive territory on Tuesday.
Global oil benchmark Brent crude fell 0.05 percent to USD 87.41 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 696.02 crore on Tuesday, according to exchange data.
“It is important to understand that the spike in US bond yields has had a greater impact on equity markets around the world than the conflict between Israel and Hamas. The US 10-year bond yield above 4.9 percent will continue to be a major -impact for stock markets. , especially for those in emerging markets. Sustained selling by FIIs is likely to continue to weigh on the markets,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Rupee falls against the dollar
The rupee depreciated by 3 paise to 83.27 against the US dollar in the morning session on Wednesday, tracking the strong American currency abroad and a muted trend in domestic equities. Continued outflow of foreign funds also increased the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 83.26 per dollar. It touched a low of 83.27 in early markets, registering a drop of 3 paise from its previous close.
(With inputs from PTI)
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