The S&P BSE Sensex dropped 386.47 points, or 0.47%, to close at 81,715.63, while the NSE Nifty 50 retreated 112.60 points, or 0.45%, ending at 25,056.90.
Here’s how analysts read the market pulse:
Profit booking has been observed in Indian markets post-GST reforms, as investors recalibrate valuations and Q2 earnings expectations, said Vinod Nair, Head of Research at Geojit Investments, adding that IT stocks underperformed due to H-1B fee hikes, while US trade rhetoric amid ongoing trade negotiations and weak global cues are prompting cautious investor sentiment.
“India’s relatively high valuations, coupled with moderation in earnings growth, continue to lead FIIs to trim their positions. That said, structural reforms and domestic growth drivers are keeping the underlying trend constructive. Current headwinds appear transitory, with headwinds likely to ease over time,” said Nair.
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US markets
Wall Street’s main indexes were subdued in choppy trading on Wednesday as traders assessed measured comments from U.S. Federal Reserve Chair Jerome Powell and awaited key economic data due later in the week.Although the recent numbers point to a resilient economy, commentary from Fed officials has injected some wariness, especially about the labor market, prompting investors to tread carefully.Powell sounded a cautious note on Tuesday when he said asset prices appeared fairly highly valued.
European Markets
European shares fell on Wednesday with financials leading losses, tracking declines on Wall Street after Federal Reserve Chair Jerome Powell’s remarks, though gains in defence-related stocks helped limit the damage.
The pan-European STOXX 600 was down 0.3% at 553.2 points. Most regional bourses also ticked lower, with the Italian benchmark at the helm of losses, down 0.4%.
Heavyweight banks dropped 0.8%, with Denmark’s Sydbank and UK’s Barclays down about 2% each. Germany’s Deutsche Bank and Spain’s BBVA fell about 1% each.
Tech View
The market continued to face selling pressure for the fourth straight session, with the Nifty maintaining its sequence of lower highs and lower lows, said Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, adding that it has now completed a 38.2% Fibonacci retracement of the rally from 24,404 to the recent peak of 25,448, with the key level around 25,050.
“A decisive move below this level could open the door for further downside towards 24,920, which coincides with the 50-day and 100-day moving averages, as well as the 50% retracement of the recent uptrend. Despite the ongoing weakness, the broader structure remains positive as long as Nifty holds above 24,900. On the upside, a breakout above 25,150 would invalidate the current bearish setup and may trigger a short-covering rally towards 25,300,” said Jain.
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Most active stocks in terms of turnover
Tata Investment (Rs 3,193 crore), Adani Power (Rs 2,061 crore), Anant Raj (Rs 1,680 crore), Axis Bank (Rs 1,487 crore), Minda Corp (Rs 1,479 crore), HDFC Bank (Rs 1,435 crore) and ICICI Bank (Rs 1,346 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 66.84 crore), Adani Power (Traded shares: 13.59 crore), YES Bank (Traded shares: 7.65 crore), Canara Bank (Traded shares: 5.51 crore), Ashok Leyland (Traded shares: 4.45 crore), Suzlon Energy (Traded shares: 3.68 crore) and Sagility India (Traded shares: 3.49 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of Tata Investment, Minda Corp, Syrma SGS Technology, SCI, Deepak Fertilisers, Himadri Speciality and JSW Holdings were among the stocks that witnessed strong buying interest from market participants.
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52 Week high
Over 176 stocks hit their 52 week highs today while 76 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Tata Steel, Maruti Suzuki and Bajaj Finance.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Tata Motors, IndusInd Bank, UltraTech Cement, Tech Mahindra, Mahindra & Mahindra, Axis Bank and TCS.
Sentiment meter bearish
The market sentiments were bearish. Out of the 4,320 stocks that traded on the BSE on Wednesday, 2,651 stocks witnessed declines, 1,540 saw advances, while 129 stocks remained unchanged.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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