Indian equity benchmarks extended their losing streak for the fourth consecutive session on Wednesday, pressured by relentless selling from foreign investors and the rupee's depreciation past a crucial psychological mark. The market mood remained cautious throughout the trading day.
Benchmarks Under Pressure
The 30-share BSE Sensex closed the session 31 points lower at 85,107 points. The index had opened in the red and plunged further, dropping by as much as 375 points to touch an intraday low of 84,763 points as investors locked in profits. Similarly, the broader 50-share NSE Nifty declined by 46 points to settle at 25,986. After a flat opening, the Nifty gradually drifted lower in early trade and moved within a narrow range for most of the session.
Key Factors Driving the Sell-Off
Analysts pointed to two primary headwinds impacting investor sentiment. First, the persistent outflow of funds by Foreign Institutional Investors (FIIs) continued to drain liquidity from the markets. Second, the Indian rupee breaching the significant 90-to-a-dollar level created additional uncertainty, raising concerns about macroeconomic stability and import costs.
However, the markets managed to recover a portion of their steep losses during the pre-close session. This late recovery was primarily fueled by buying interest in major Information Technology stocks and strong performances from banking heavyweights ICICI Bank and HDFC Bank.
Major Losers on the Sensex
The sell-off was broad-based, with several key index constituents ending the day in negative territory. Bharat Electronics was the top loser, shedding 2% of its value. Other significant laggards included:
- Mahindra & Mahindra
- Titan Company
- NTPC
- State Bank of India
- Adani Ports
- Tata Motors Passenger Vehicles
- Bajaj Finserv
The consistent decline over four sessions highlights the prevailing risk-off mood among investors, who are closely monitoring global cues and domestic economic indicators for future direction.
