Key equity benchmark indices on Wednesday fell close to 1% on continued selling pressure.
The S&P BSE Sensex fell 509.29 points, or 0.89%, to 56,598.28 points. Sensex stocks which lost the most include ITC (2.97%), Axis Bank (2.84%), Reliance (2.645), Tata Steel (2.41%) and State Bank (2.04%).
The NSE Nifty 50 too declined 148.80 points, or 0.87%, to 16,858.60.
“Markets are not seeing any relief [due to] feeble global cues and a [breach] of 16,800 in Nifty could further dampen sentiment,” said Ajit Mishra, VP – Research, Religare Broking.
“Meanwhile, oversold positions in select index majors may result in a marginal bounce in between. We reiterate our view to focus more on risk management and prefer defensive,” he added.
Vinod Nair, Head of Research, Geojit Financial Services said: “Investors continue to be sceptical of the domestic market’s higher premium amid the ongoing global deceleration while foreign investors are fleeing emerging economies in search of safer havens.
“Although the domestic economy is buoyed by solid fundamentals, the stock market’s appetite for risk has been hindered by the rising worries of a worldwide recession,” he added.
The rupee also came under selling pressure and weakened by 40 paisa against the U.S. dollar, to 81.93.
Megh Mody, Commodities and Currencies Research Analyst, Prabhudas Lilladher, said, “Rupee technically has depreciated 3.8% from 79 levels which was recently tested. I think rupee will take support of 82 and remain in the range of 82-80 levels. This consolidation will benefit importers if it tests 80 levels over short term.”
