Indian equity indices closed flat on Wednesday in a highly volatile market, tracking Asian peers amid worries over a delay in rate cuts by the Federal Reserve.

The 30-share BSE benchmark Sensex slipped 27 points, or 0.04% to close at 73,877. The broader NSE Nifty declined 19 points, or 0.08%, settling at 22,434.

Nestle India was the top Sensex laggard, falling 2.6% on worries over earnings growth in the sector. Kotak Bank, JSW Steel, Titan, Bajaj Finserv, and IndusInd Bank also closed in the red, while NTPC, Tech Mahindra, TCS, and Bharti Airtel ended with gains.

Among individual stocks, JSW Energy closed over 7% higher after the firm said it plans to raise Rs 5,000 crore by selling shares to high-net-worth investors through a qualified institutional placement process or QIP.

National Aluminium also closed 5% higher after the state miner reported its highest-ever cast metal production at 463,428 metric tonnes for the financial year ending March 31.

On the sectoral front, Nifty Realty, which gained 14.5% in the last eight sessions, fell 2.6%. Nifty Auto, FMCG, Pharma, Private Bank, and Healthcare also closed lower.On the sectoral front, Nifty Realty, which gained 14.5% in the last eight sessions, fell 2.6%. Nifty Auto, FMCG, Pharma, Private Bank, and Healthcare also closed lower.Meanwhile, the market capitalisation of all listed companies on the BSE increased by Rs 1.82 lakh crore to Rs 397.4 lakh crore. The market breadth was skewed in favour of the bulls. About 2,797 stocks gained, 1,055 declined, and 113 remained unchanged on the BSE.

Expert Views

“There is a subtle positivity in the Indian market, bucking the weak global trend, aided by positive manufacturing PMI data and optimistic expectations of upcoming Q4 results. Buoyancy of the broad market indicates strength to continue in the short-term,” said Vinod Nair, head of research, Geojit Financial Services.

“Meanwhile, strong US economic data has apparently cast doubts on the Fed rate cut in June anticipated by the market. The market is focused on the US FED chair’s speech, later today, for more hints. A statement in-line with the last policy is predicted to bring back a respite to the global market,” Nair said.

Rupak De, senior technical analyst at LKP Securities, said, “Over the short term, the index may trend towards 22,650. Support is positioned at 22,350 on the lower end.”

Global Markets

Global stocks eased on Wednesday in the face of rising bond yields, as investors assessed how much US rates might fall this year, while a powerful earthquake in Taiwan raised concerns about possible disruptions to the vital chip-making industry.

The MSCI All-World index fell 0.1% in its third consecutive daily drop, while European equities traded modestly in negative territory. US futures fell 0.2-0.3% ahead of an appearance from Federal Reserve Chair Jerome Powell and U.S. services and jobs figures later on.

In Asia, shares in Taiwan skidded 0.5% after a 7.2 magnitude earthquake rocked the island.

Crude Oil

Oil prices were stable on Wednesday, as investors mulled supply risks stemming from ongoing Ukrainian attacks on Russian refineries and the potential for a widening of the Middle East conflict.

Brent crude futures for June rose 16 cents, or 0.18%, to $89.08 per barrel, while U.S. West Texas Intermediate crude futures for May gained 11 cents, or 0.13%, to $85.26 a barrel.

Rupee ends at record closing low

The Indian rupee ended at a record closing low weighed down by dollar demand from local oil companies and weakness in its Asian peers.

The rupee closed at 83.4350 against the US dollar, weaker by 0.06% compared to its close at 83.3850 in the previous session. The rupee ended just shy of its historical low of 83.45 hit last week.

(With inputs from agencies)


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