NEW DELHI: Equity indices plunged for the fourth straight session on Wednesday with benchmark BSE sensex falling over 550 points dragged by banking, metal and financial stocks.
The 30-share BSE index fell 562 points or 1.12 per cent to close at 49,802; while the broader NSE Nifty settled 189 points or 1.27 per cent to finish at 14,721.
Top losers in the sensex pack included ONGC, Sun Pharma, SBI, NTPC, Bajaj Auto and IndusInd Bank with their shares falling as much as 4.78 per cent.
While ITC, Infosys, HDFC and TCS were the only stocks that finished up to 1.20 per cent higher.
On the NSE platform, sub-indices Nifty PSU Bank, Realty and Metal falling up to 3.77 per cent.
According to experts, investors turned cautious tracking tepid global cues ahead of the US Federal Reserve’s policy outcome.
“Clearly, mounting concerns with regards to higher inflation, bond yields and a recent spike in new Covid-19 cases in select states have weighed on investors’ sentiments,” Binod Modi Head-Strategy at Reliance Securities told news agency PTI.
“Outcome of Fed policy meeting will equally be important for domestic markets in the near term as this can potentially influence FPIs flows into equities and INR. However, India continues to remain as the most preferred destination for investors on better growth prospects,” he added.
Besides, India is also dealing with a fresh surge in Covid-19 cases, with daily infections jumping by 28,903 on Wednesday, the highest increase since December 13 last year.
A rise in bond yields has also limited gains for the domestic indices this month to about 3 per cent, compared to a 6.6 per cent jump in February.
“The RBI may have to do a fine balancing act to keep the bond yields at lower levels while managing the government’s borrowing program,” Rahul Sharma, market strategist and head of research at Equity99 told news agency Reuters.
Globally, US equities finished marginally lower ahead of the FOMC meeting outcome.
Meanwhile, foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth Rs 1,692.31 crore, as per exchange data.
(With inputs from agencies)