Sensex falls 257 points, Nifty ends below 17,850; bank, auto stocks drag

• Follow

Indian benchmark share indices settled in the red on Wednesday led by losses in index heavyweights ICICI Bank, HDFC Bank and Kotak Bank. Sensex ended at 59,771.92, down 257.14 points or 0.43%, while Nifty closed 59.75 points or 0.33% lower at 17,829.20.

Market participants were uncertain about the US Fed meet outcome which may cut the wings of the ongoing rally. Most analysts expect the start of tapering of its bond buying program and some believe a time of possible rate hikes will be announced.

“After a sideways movement post its positive opening, the indices took a downturn as major global indices traded weak ahead of the Fed policy announcement. The Federal Reserve is widely expected to announce the tapering of its asset purchase program in the near-term while any hint on interest rate reversal is keeping investors on the edge. Any indications showing a faster rate of tapering will have a negative effect on the equity market. Or else, we can expect a reversal from this weak trend. On a positive note, despite the rise in input costs, India’s Services PMI jumped to 58.4 in October from 55.2 in September owing to ongoing improvements in demand boosting the growth of sales,” said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

Sectoral strand

On the sectoral front indices ended mixed on the NSE with the NSE Realty index continuing its uptrend for the third in a row and up about 1.94%. While the Nifty Metal index surging 0.93%.

On the downside, Nifty Bank and Nifty Auto indices lost 1.34% and 1.04% respectively. Whereas, Nifty Pharma & Nifty FMCG indices slipped anywhere between 0.64%-0.75%.

Broader markets

The broader markets were better off when compared to benchmark indices as the BSE MidCap index ended at 25,803 levels lower by 57 points or 0.22%. While the BSE SmallCap index slipped 93 points or 0.33% to 28,512.

The market breadth also turned negative as 1,643 shares declined compared to 1,596 advanced while 162 remained unchanged.

Global markets

Shares in Europe and Asia were mixed on Wednesday, 3 November 2021, as investors prepare for the latest comment and monetary policy decision from the US Federal Reserve.

The US Fed will hold two-day meeting on Tuesday and Wednesday. The Fed is widely expected to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year.

Bank of England policy makers will decide on interest rates on Thursday (4 November).