Benchmark stock market indices erased early gains to close lower on Wednesday as there were no fresh triggers to pull the markets up. FMCG and consumer goods stocks were major laggards for the day.
The S&P BSE Sensex was down 120.21 points to close at 84,559.65, while the NSE Nifty50 lost 41.55 points to end at 25,818.55.
Vinod Nair, Head of Research, Geojit Investments Limited, said that global market signals remain mixed.
“Rising Japanese bond yields point to tighter liquidity and pressure on equity valuations, while soft U.S. labour data amplifies recession concerns and strengthens expectations of a more accommodative Fed. Domestically, the RBI’s efforts to stabilise the rupee lent support to rate-sensitive sectors,” he added.
Foreign investors are pulling out funds, and emerging markets are struggling, while developed economies remain strong, showing that investors are becoming more cautious about emerging markets. Although currency stability offers temporary relief, global uncertainty and sustained foreign selling keep upside potential limited, leaving markets skewed toward a bearish bias.”
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