The benchmark indices opened lower on the stock market on Wednesday. Sensex was still above 50,000 while Nifty held above 15,000-mark. At 09:18 AM, the Sensex was down 113.20 points or 0.23 percent at 50080.13. The Nifty was down 32.90 points or 0.22 percent at 15075.20.
Both Dow Jones and S&P 500 declined 0.8 percent each mainly led by telecom shares. US stock fell yesterday with equity-market investors caught in a clash, as upbeat corporate results and expectations for a booming economic expansion in the wake of the COVID-19 pandemic competed with worries about lofty valuations and signs of accelerating inflationary pressures, said Mohit Nigam, Head - PMS, Hem Securities
Asian stocks dipped and cryptocurrencies extended losses on Wednesday as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now.
The market, however, turned flat in the first half hour of trading. The 30-share BSE index was trading 6.73 points or 0.01 percent higher at 50,200.06, and the broader NSE Nifty advanced 1.50 points or 0.01 percent to 15,109.60.
M&M was the top loser in the Sensex pack, shedding around 1 percent, followed by ONGC, Kotak Bank, ITC, HUL and HDFC Bank. On the other hand, PowerGrid, SBI, UltraTech Cement, Nestle India and NTPC were among the gainers.
In the previous session, Sensex soared 612.60 points or 1.24 percent to settle at 50,193.33, and Nifty quoted higher by 184.95 points or 1.24 points at 15,108.10.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 618.49 crore on Tuesday, as per provisional exchange data.
Binod Modi, Head Strategy at Reliance Securities, told PTI that there were concerns from rising inflationary pressure globally and increasing apprehension among investors about Federal Reserve's soft monetary stance due to sharp rise in CPI inflation may weigh on sentiments.
US equities contracted for second consecutive day as mounting inflationary concerns and weak housing data weighed on investors'' sentiments, he noted.
Modi further said that investors will continue to focus on the trajectory of daily caseload and vaccination ramp up in the country in the near term.
"India has been reporting less than 3 lakh daily caseload for the last three days. This will continue to embolden investors.
"It indicates that earlier assumption of daily caseload in second wave peaking-out by the end of May or mid of June holds true and adverse impact of second wave should not be felt beyond 1QFY22. This has already aided markets witnessing sharp uptick in the last two trading days," he said.
Asian stocks decline
Asian stocks dipped and cryptocurrencies extended losses on Wednesday as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now, Reuters said.
international oil benchmark Brent crude was trading 1.15 percent lower at $67.92 per barrel.
Petrol prices unchanged
Petrol and diesel prices remained unchanged on Wednesday after a hike on the previous day. Rates had already crossed the Rs 100-mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra and with the latest increase, the price in Mumbai too was inching towards that level.
On Wednesday, petrol was retailing at Rs 92.85 per litre in Delhi and a litre of diesel for Rs 83.51. In Mumbai, petrol and diesel were sold at Rs 99.14 and Rs 90.71 per litre, respectively. In Chennai, petrol is priced at Rs 94.54 per litre while the price of diesel is Rs 88.34 per litre. The price of petrol in Kolkata is Rs 92.92 per litre while diesel is sold at Rs 86.35 per litre.