Benchmark equity indices Sensex and Nifty declined nearly 1 per cent on Wednesday, continuing their losing streak for the fourth day running amid profit-taking by cautious investors ahead of the results of the Lok Sabha polls and weak global trends.
The 30-share BSE Sensex declined 667.55 points, or 0.89 per cent, to settle at 74502.90. The index declined below the 75000 mark to hit the day’s low of 74454.55, plunging 715.9 points or 0.95 per cent. The BSE benchmark hit its all-time peak of 76009.68 on May 27.
The NSE Nifty dropped 183.45 points, or 0.80 per cent, to 22704.70. The 50-share barometer hit its lifetime high of 23110.80 on Monday.
In Asian markets, Seoul, Tokyo and Hong Kong settled lower, while Shanghai ended with gains. European markets were trading lower. Wall Street opened lower, with investors turning risk averse as concerns around the timing and scale of the Fed’s interest rate cuts pushed Treasury yields higher
“Weak global cues prompted investors to take profits ahead of the US core PCE data, a key gauge of inflation that is anticipated to rise,” Vinod Nair, head of research, Geojit Financial Services, said.
“With the May derivatives contracts expiry approaching, volatility is expected to remain high,” said Ajit Mishra – SVP, Research, Religare Broking.
Wealth erosion
Investors’ wealth eroded by ₹5.12 lakh crore in four straight days of fall in the equity markets.
In four sessions since May 24, the benchmark gauge dropped 915.14 points, or 1.21 per cent. The market capitalisation of BSE-listed companies eroded to ₹4,15,09,713.94 crore ($4.98 trillion) in the four sessions to Wednesday.
From its all-time peak, the BSE benchmark is down 1506.78 points or 1.98 per cent.
