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In a volatile session ahead of the US Federal Reserve’s interest rate decision in the evening today, the domestic equity market on Wednesday fell amid a steep fall in IT shares and a minor profit booking with underperformance by midcap stocks. The BSE Sensex fell by 131.43 points or 0.16 per cent to close at 82,948.23, while the NSE Nifty declined 41 points or 0.16 per cent to close at 25,377.55.
The stress came in the second half of the session amid profit booking, as the BSE Sensex had hit all-time high of 83,309.96 at 10:49 am, while the NSE Nifty touched its record level of 25,478.6.
Among the 30 Sensex shares, 11 ended the day in green. The top gainers were Bajaj Finance, Bajaj Finserv, Nestle, ICICI Bank, HDFC Bank and SBI rising up to 3.65 per cent. The top losers were TCS, HCL Tech, Infosys, Tech Mahindra, Sun Pharma and Tata Steel.
Vinod Nair, head of research, Geojit Financial Services, said, “The Indian market experienced a minor profit booking with underperformance by midcaps. Mixed signals from global markets emerged ahead of the anticipated FOMC rate cut decision which is seemingly priced in a 25-bps cut. Investors assess the potential for a short-term underperformance of equity given the elevated valuation and correction of metal prices.”
Commodities, including oil prices, are steadily declining, suggesting a potential tempering of economic growth. Investor caution is evident as gold prices rise, likely due to anticipated dollar weakness following the rate cut, he added.
Nifty, Nifty Bank Technicals
“The Nifty has been moving within a small range. On the downside, there is support at 25,300. If Nifty falls below this level, it could lead to a further drop towards the 24,900-25,000 range. On the upside, 25,500 is acting as a resistance level, meaning it may be difficult for the market to move above this point in the short term,” said Rupak De, senior technical analyst, LKP Securities.
