MUMBAI– Indian equity markets ended lower on Wednesday, dragged down by selling in IT, auto, and banking shares as investors booked profits and tracked weak global cues. The losses marked the continuation of a downtrend through the week.
The Sensex fell 386.47 points, or 0.47 percent, to close at 81,715.63 after opening slightly lower at 81,917.56. The benchmark touched an intra-day low of 81,607.84. The Nifty shed 112.60 points, or 0.45 percent, to settle at 25,056.90.
Market analysts attributed the decline to a mix of domestic and global factors. “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 U.S. trade rhetoric amid ongoing negotiations and weak global cues are prompting cautious sentiment,” they said.
From the Sensex basket, Tata Motors, BEL, Ultratech Cement, Tech Mahindra, Mahindra & Mahindra, TCS, Axis Bank, Titan, Kotak Bank, ICICI Bank, HDFC Bank, Bajaj Finserv, and Eternal ended in the red. Gains were limited to PowerGrid, Hindustan Unilever, NTPC, HCL Tech, Maruti, L&T, and Asian Paints.
Sectoral indices reflected the broad weakness. Nifty Auto dropped 314 points (1.15%), Nifty IT slipped 254 points (0.72%), Nifty Bank declined 388 points (0.70%), and Nifty Financial Services shed 171 points (0.64%).
The broader market also followed suit, with the Nifty Next 50 down 835 points (1.20%), Nifty 100 falling 149 points (0.58%), Nifty Midcap 100 lower by 572 points (0.98%), and Nifty Small Cap 100 dropping 122 points (0.67%).
Despite the pullback, analysts noted that India’s structural reforms and domestic growth drivers continue to lend support to the market’s long-term outlook, even as high valuations and moderating earnings growth drive near-term caution among foreign investors. (Source: IANS)
