Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, plunged in trade for the third consecutive day on Wednesday. While BSE Sensex went below 80,200, Nifty50 was below 24,200. BSE Sensex ended the day at 80,182.20, down 502 points or 0.62%. Nifty50 closed at 24,198.85, down 137 points or 0.56%.
Indian equities declined on Wednesday, with major financial stocks leading the downturn, as investors awaited the Federal Reserve's policy decision, concerned about potential signals of reduced rate cuts.
This week has seen the benchmarks lose more than 2%, with overseas investors withdrawing funds, causing the Nifty 50 to settle below its 50-day moving average for two consecutive sessions on Wednesday.
Financial sector fell 1.23%, leading ten of 13 major sectoral indices lower. Small and midcap segments, which focus more on domestic markets, declined 0.9% and 0.6%, respectively.
Investors remain anxious about the Fed's 2025 rate outlook, despite expectations of a quarter-point rate reduction later Wednesday, given persistent inflation and robust economic conditions.
"Foreign investors are contending with the possibility that in 2025 the Fed may not need to cut rates as aggressively as anticipated earlier this year," Abhishek Goenka, founder of IFA Global told Reuters.
Emerging market assets, including Indian equities, typically benefit from US rate reductions through increased foreign investment.
Foreign investors sold Indian shares worth approximately 64.1 billion rupees ($755 million) net on Tuesday, with Wednesday's figures pending market closure.
Index heavyweights HDFC Bank and ICICI Bank dropped 1.2% and 1.5% respectively on Wednesday, significantly impacting the Nifty 50.
Adani Green Energy declined 3.3%, extending its 5% loss since Reuters reported about bribery allegations regarding Adani executives and an approved deal against Indian officials' advice.
Contrasting the overall market decline, MobiKwik surged 89% and Vishal Mega Mart rose 44% in their market debuts.
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