Sensex declines 303 points, as IT stocks continue decline
The Hindu
‘Focus in coming weeks to be on RBI moves to rein in inflation’
Benchmark stock indices fell for the third consecutive day on Wednesday, as technology counters continued to decline. Globally too, tech shares witnessed selling pressure.
The S&P BSE Sensex fell 303.35 points, or 0.56%, to 53,749.26. Four among the six stocks that slid the most were IT stocks. Asian Paints declined 8.04%, while TCS (3.69%), Tech Mahindra (3.53%), Wipro (3.30%0 L&T (3.09%) and Infosys (2.06%) too dropped.
The NSE Nifty50 index slumped 0.62%, to 16,025.80 points.
“Most sectoral indices ended in the red,” said Arafat Saiyed, senior research analyst at Reliance Securities. “Nifty IT plunged the most at 3.4%, followed by Nifty Media and Nifty Reality which were down 2.9% each,” he added.
"As investors await the last leg of earnings results which will end by this week, the primary focus in the coming weeks will be on the central banks’ policy measures to stabilise inflation," he said.
"Changes in oil prices and amendments to import and export duties might play a role in assessing the market’s trajectory. However, continuous FII sale and the plunging rupee, are likely to have economic implications in the near-term," he added.
The decline in India’s net foreign direct investment (FDI) inflows, which have dropped almost 31% to $25.5 billion over the first ten months of 2023-24, is in line with the slowdown in such investments to developing countries, the Finance Ministry has said, while holding out hope for an uptick in investments this year.