mumbai: Benchmark stock indices Sensex and Nifty fell for the fourth consecutive day on Wednesday due to profit-taking in banking, auto, and capital goods shares, as well as foreign fund outflows, amid concerns over US H-1B visa fees that continue to dent investor sentiment.
The 30-share BSE Sensex dropped 386.47 points or 0.47 per cent to end at 81,715.63. During the day, it tanked 494.26 points or 0.60 per cent to 81,607.84. The 50-share NSE Nifty declined 112.60 points or 0.45 per cent to 25,056.90.
Among Sensex firms, Tata Motors, Bharat Electronics, UltraTech Cement, Tech Mahindra, Mahindra & Mahindra, ICICI Bank, Tata Consultancy Services and Axis Bank were the major laggards.
However, Power Grid, Hindustan Unilever, NTPC and HCL Tech were among the gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,551.19 crore on Tuesday, according to exchange data.
“Profit-booking has been observed in Indian markets post-GST reforms, as investors recalibrate valuations and Q2 earnings expectations. 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,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
India’s relatively high valuations, coupled with moderation in earnings growth, continue to lead FIIs to trim their positions, Nair added.
“Domestic equities ended lower on Wednesday, as weak global cues, FII outflows, and fresh concerns over US visa policy changes pressured sentiment. The rupee’s weakness and firm crude oil prices added to the cautious mood,” Gaurav Garg, Analyst, Lemonn Markets Desk, said.
The BSE midcap gauge dropped 0.85 per cent and smallcap index declined 0.50 per cent. Among sectoral indices, realty dropped the most by 2.47 per cent, followed by utilities (1.19 per cent), capital goods (1.09 per cent), services (1.07 per cent), power (1.06 per cent), auto (1.06 per cent) and consumer discretionary (0.87 per cent). FMCG emerged as the only gainer.