The BSE Sensex dropped by more than 100 points in early trading hours on Wednesday, dragged lower by weakness in banking, financials, and IT stocks amid global uncertainty and subdued investor sentiment.
The 30-share Sensex opened at 65,740, down 115 points, while the broader Nifty50 index slipped below the 19,800 mark. Key index constituents such as HDFC Bank, Infosys, Kotak Mahindra Bank, and Tech Mahindra were among the top losers, contributing significantly to the morning decline.
This comes on the heels of mixed global signals. U.S. markets ended flat overnight, with investors parsing through mixed economic data and commentary from Federal Reserve officials, who hinted at keeping interest rates elevated for longer due to persistent inflation risks.
“The Fed’s hawkish tone has reignited fears of a prolonged high-rate environment, which is weighing on global equities including India,” said Priya Kapoor, Senior Economist at Axis Strategies. “Back home, concerns around consumer demand and liquidity are also pressuring investor confidence.”
The rupee weakened slightly against the U.S. dollar, touching ₹83.19, as foreign institutional investors (FIIs) continued to offload Indian equities. FIIs were net sellers in the previous session, pulling out over ₹1,200 crore, according to NSE data.
Domestically, eyes are on the upcoming release of key data points including industrial production, core sector growth, and inflation expectations — which could determine the RBI’s next policy moves.
On the sectoral front, the Nifty Bank index was down over 0.5%, while Nifty IT and Nifty Financial Services were also trading in the red. FMCG and Pharma stocks saw some selective buying, offering mild support to the broader indices.
Analysts believe the market may remain range-bound in the coming sessions, with a cautious bias prevailing unless there’s a strong positive catalyst, either domestic or global.
