Markets fall after 2-day breather amid weak global cues

While BSE Sensex tumbled 709.54 points to settle at 51,822.53, NSE Nifty fell 225.50 points to end at 15,413.30

An employee at a stock broker’s office in Mumbai. File | Photo Credit: Vivek Bendre

Equity indices slipped in the negative territory on Wednesday after a two-day breather, with the BSE Sensex tumbling 709.54 points following weak trends in global markets.

Unabated foreign fund outflows also played spoilsport for the bourses.

The 30-share BSE Sensex tanked 709.54 points or 1.35% to settle at 51,822.53. During the day, it declined 792.09 points or 1.50% to 51,739.98.

The NSE Nifty fell 225.50 points or 1.44% to end at 15,413.30.

From the Sensex pack, Tata Steel, Wipro, Reliance Industries, IndusInd Bank, HCL Technologies, Bajaj Finserv, Titan and Bajaj Finance were the major laggards.

On the other hand, TCS, HUL, PowerGrid and Maruti Suzuki India were the gainers.

Elsewhere in Asia, markets in Hong Kong, Seoul, Shanghai and Tokyo ended lower.

European markets were also trading in the red in mid-session deals.

The United States markets recorded smart gains on Tuesday.

"Pull back rallies can be sharp and it was sharp yesterday. The important question is -- will this continue? There is no economic news, except the softness in crude, to sustain the rally.

"There is no reason for FIIs to change their selling strategy since the dollar continues to be strong and U.S. bond yields are attractive and expected to rise further," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The BSE Sensex had zoomed 934.23 points or 1.81%, while the NSE Nifty climbed 288.65 points or 1.88% on Tuesday.

Meanwhile, international oil benchmark Brent crude dropped 4.19% to $109.8 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth ₹2,701.21 crore on Tuesday, as per exchange data.