Indian stock markets came under selling stress on Wednesday trade as banking stocks underwent a selloff. The BSE Sensex was down 240 points.
Indian stock markets came under selling stress on Wednesday trade as banking stocks underwent a selloff. The BSE Sensex was down 240 points while the broader Nifty fell 76 points.
However, the Indian currency gained 0.3 percent and reached to Rs. 62.56.
Regardless of a trivial retract in the previous session; market experts see a downside trend for the markets following the fresh highs.
According to reports, the fund manager at Sharekhan, Rohit Srivastava said “Markets made a significant top last week. Nifty’s trend is seen on the downside. The time has come for Nifty to catch up with the broader market.”
Among the stocks, oil selling Public Sector Unit companies IOC, HPCL and BPCL fell between 1 percent and 3 percent following the Oil Minister’s statement that the government presently has no plan to raise diesel prices. Among blue chip shares, Reliance Industries Ltd is down by 3 percent, while HDFC Bank Ltd is down by 3.5 percent.
In other Asian markets, shares tripped and the dollar edged up in early morning trade on Wednesday, as fears about a potential U.S. government shutdown and ambiguity about the U.S. Fed Reserve’s policy stance made investors cautious of taking hostile positions.
Reportedly, analysts at Credit Agricole wrote in a note to clients that “Sentiment remained somewhat subdued as investors stayed cautious amid lingering uncertainty on the Fed’s stance.”
MSCI’s broadest index of Asia-Pacific shares outside Japan slid about 0.1 percent, while Japan’s Nikkei stock standard was down by 0.2 percent.
The dollar was barely higher against its Japanese currency, buying 98.76 yen, while it climbed moderately against a basket of six currencies to 80.588.