India equity benchmarks inch lower for third day as investors await fresh cues
- Nifty 50 fell 0.16% to 25,818.55, and the BSE Sensex lost 0.14% to 84,559.65
India’s equity benchmarks inched lower for a third consecutive session on Wednesday as sentiment remained subdued amid concerns over foreign outflows and rupee depreciation, with no clarity regarding an India-U.S. trade deal.
The Nifty 50 fell 0.16% to 25,818.55, and the BSE Sensex lost 0.14% to 84,559.65. They are down about 0.9% in three sessions.
Eleven of the 16 major sectors fell on the day. The broader mid-caps and small-caps lost 0.5% and 0.7%, respectively.
“The market is likely to trade in a tight range and struggle for further upside unless something changes dramatically with regard to either a potential trade deal between India and U.S. or constant foreign outflows,” said UR Bhat, co-founder of Alphaniti Fintech.
Foreign investors have sold Indian equities worth 130.5 billion rupees ($1.44 billion) in eight sessions till Tuesday. They have offloaded $1.92 billion so far in December.
The Reserve Bank of India intervened aggressively in the currency markets on Wednesday by selling dollars to prop up the rupee in a bid to stem its one-way decline after it slipped below 91 in the previous session.
Analysts said that hopes for a deal with Washington before the year’s end appear to be dimming. Heavyweight financials fell 0.5% on the day, with major constituents HDFC Bank and ICICI Bank dropping 1% each.
Elsewhere, U.S. jobs growth rebounded more than expected in November even as the unemployment rate rose to a four-year high, keeping the outlook on Federal Reserve’s future rate action uncertain.
Among individual stocks, Akzo Nobel India slumped 13.6% after multiple block deals. Reports said the promoter was looking to sell a stake in the paint company.
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