The Indian stock market experienced a second consecutive day of decline on Wednesday, with the benchmark Sensex plunging by 535 points due to significant selling pressure in HDFC Bank and IT shares, compounded by subdued global market trends.
The BSE Sensex concluded the day at 71,356.60, marking a notable fall of 535.88 points or 0.75 percent. The day saw a further dip of 588.51 points or 0.81 percent to touch 71,303.97. Correspondingly, the broader Nifty of the National Stock Exchange also witnessed a decline, slipping by 148.45 points or 0.69 percent to settle at 21,517.35.
The market downturn was led by prominent Sensex entities such as JSW Steel, Tata Steel, Tech Mahindra, Infosys, Wipro, Tata Consultancy Services, Nestle, HCL Technologies, HDFC Bank, and Maruti, which experienced substantial setbacks. Conversely, IndusInd Bank, ITC, Bharti Airtel, and State Bank of India emerged as notable gainers.
Amidst the global market scenario, Asian markets experienced mixed results, with Seoul and Hong Kong closing lower while Shanghai managed to conclude in the green. European markets were seen trading on a downward trend, and the US markets predominantly ended lower on Tuesday.
The market sentiment was influenced by various factors, including the absence of fresh market triggers and concerns regarding valuation. Additionally, apprehensions arose from weak global indicators, such as the contraction in China and Eurozone manufacturing data, raising concerns about the global economic recovery in the year 2024. Investors are eagerly anticipating insights from the FED minutes later in the day, expecting clarity on rate insights.
On the economic front, India’s manufacturing sector witnessed a slowdown in growth, hitting an 18-month low in December. The HSBC India Manufacturing PMI survey conducted by S&P Global revealed a decline from 56 in November to 54.9 in December. This decrease was primarily attributed to softer but still substantial increases in factory orders and output, while business confidence in the year-ahead outlook exhibited some strength.
Furthermore, global oil benchmark Brent crude faced a dip of 0.55 percent, settling at $75.47 a barrel. In terms of investments, Foreign Institutional Investors (FIIs) purchased equities worth ₹1,602.16 crore on Tuesday, as per exchange data.
The market had previously witnessed a fall, with the Sensex declining by 379.46 points or 0.53 percent to settle at 71,892.48 on Tuesday, while the Nifty declined by 76.10 points or 0.35 percent to reach 21,665.80. As the market continues to navigate through volatile conditions, investors are keenly observing global cues and awaiting key economic indicators to guide their future strategies.