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Indian Equities Extend Their Fall For Third Consecutive Day

The 30-share Sensex ended 303.35 points lower or 0.56 per cent to settle at 53,749.26. Its broader peer Nifty50 ended 99.35 points lower or 0.62 per cent to settle at 16,025.80

Photo Credit : PTI

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After opening in green in early trade on Wednesday, Indian equities continued their fall for the third consecutive day. All early gains were wiped off as IT and metal stocks witnessed heavy selling pressure. Globally investors remained cautious as they await the minutes of the Federal Open Market Committee (FOMC) later in the day as well as the bleak global economic outlook owing to the impact of inflation, higher interest rates, the slowdown in the Chinese economy and the Ukraine war entering its fourth month.

The S&P 500 and the Nasdaq finished in the red on Tuesday as worries that aggressive moves to curb decades-high inflation might tip the U.S. economy into recession dampened investors' risk appetite. 

The 30-share Sensex ended 303.35 points lower or 0.56 per cent to settle at 53,749.26. Its broader peer Nifty50 ended 99.35 points lower or 0.62 per cent to settle at 16,025.80.

"The subdued mood in the market continued for the third straight session as investors preferred to liquidate their holdings in stocks which are still highly valued. Investors are also waiting for the US FOMC minutes that will provide some clarity on where the market could move in the near term," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

The Nifty IT index closed 3.4 per cent lower, having dropped to its lowest in the session since last June. Infosys, Tata Consultancy Services and Wipro fell between 2 per cent and 3.6 per cent.

A hiring freeze and an increase in employee termination to cut costs are likely to slow the unprecedented demand for tech talent in the coming quarters, a Nomura analyst said in a note.

"This could lead to a material fall in attrition in FY24 forecast, a margin tailwind for the (IT) sector," the note added.

Among individual stock moves, Asian Paints (ASPN.NS) was the top percentage decliner on the Nifty 50, falling 8 per cent.

Zinc miner Hindustan Zinc closed 3 per cent higher. It had jumped as much as 7.7 per cent in the session after media reports said the government has approved the sale of its stake in the company.

Coal India and InterGlobe Aviation fell 0.9 per cent and 2.2 per cent, respectively, ahead of quarterly earnings results.


(With Reuters Inputs)


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