Sensex, Nifty Plummet Over 1% as Global Markets Recoil

Mumbai: Benchmark indices Sensex and Nifty experienced a significant downturn on Wednesday, each plummeting over 1%, weighed down by weak global trends and anticipation of the US Federal Reserve’s interest rate decision.

Multiple factors contributed to the decline, including surging US bond yields, escalating crude oil prices, foreign fund outflows, and caution ahead of interest rate decisions by global central banks.

HDFC Bank, JSW Steel, Reliance Industries, UltraTech Cement, Maruti, Tata Steel, Wipro, Tech Mahindra, Bharti Airtel, and Larsen & Toubro were among the notable losers in the Sensex pack.

On the flip side, gainers included Power Grid, Asian Paints, Sun Pharma, Axis Bank, NTPC, ITC, and Infosys.

The market’s pressure was exacerbated by rising US bond yields and a stronger US dollar. Concerns centred on the upcoming Fed policy, interest rate trajectory, and increasing oil prices.

The broader market also witnessed a decline, with the BSE smallcap gauge falling by 0.51% and the midcap index declining by 0.33%. Key sectoral indices such as financial services, commodities, metal, realty, bankex, telecommunication, and oil & gas registered declines, while utilities and power showed gains.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,236.51 crore on the preceding trading day.