The benchmark indices on Wednesday opened lower tracking negative trend seen in Asian markets and Wall Street as investors worried that US President Donald Trump will struggle to deliver promised tax cuts that propelled the market to record highs in recent months.
At 09:17 am, the S&P BSE Sensex was trading at 29,307, down 178 points, while the broader Nifty50 was ruling at 9,063, down 58 points.
In the broader market, the S&P BSE Midcap index shed nearly 1%, while S&P BSE Smallcap index was down 0.5%.
“We reiterate that the Nifty is likely to head towards 9,400-9,600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. Having said that, in between some consolidation or a profit booking (like we saw in the last three sessions) by momentum traders cannot be ruled out,” said brokerage Angel Broking in a technical note.
“On the lower side, 9,100-9,050 levels would provide a strong support in today’s session,” it added.
Meanwhile, foreign institutional investors on Tuesday turned net buyers and bought equities worth Rs 1,663 crore, while domestic institutional investors sold equities worth Rs 798 crore.
ICICI Bank, M&M and Bharti Airtel were the top losers on Sensex and dipped up to 3% on the BSE.
Shares of Avenue Supermarts shed over 1% to Rs 625 after a bumper listing in the previous session.
Oil prices fall, gold trades firm
Oil prices dipped on Wednesday as rising crude stocks in the United States underscored an ongoing global fuel supply overhang despite an OPEC-led effort to cut output.
Prices for front-month Brent crude futures, the international benchmark for oil, were at $50.89 per barrel, down 7 cents from their last close. US West Texas Intermediate (WTI) crude futures were down 10 cents at $48.14 a barrel.
Gold prices held firm, close to near 3-week highs touched the session before, as the dollar weakened and equities fell on doubts over Trump’s economic agenda.
Asian stocks posted their biggest drop in two weeks on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan fell over 2% in early trade, its biggest intraday percentage fall since March 9. China’s Shanghai Composite was down 0.7%, while Hong Kong’s Hang Seng index slipped over 1%. Japan and Australian stocks led regional losers.
On Wall Street, Both the S&P 500 and the Dow Jones Industrial Average lost more than 1% on Tuesday in frantic trading, their biggest one day slide since Trump’s election victory in November. US futures were down 0.3%.
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