Stocks down further, Sensex falls 536 points, Nifty loses 148 points

 Stock markets declined for a second day in a row on Wednesday with benchmark Sensex closing lower by 535 points due to selling in HDFC Bank and IT shares amid weak global trends.

The 30-share BSE Sensex fell by 535.88 points or 0.75 per cent to settle at 71,356.60. During the day, it tumbled 588.51 points or 0.81 per cent to 71,303.97.

The broader Nifty of the National Stock Exchange slipped 148.45 points or 0.69 per cent to 21,517.35.

Among the Sensex firms, JSW Steel, Tata Steel, Tech Mahindra, Infosys, Wipro, Tata Consultancy Services, Nestle, HCL Technologies, HDFC Bank and Maruti were the major laggards.

IndusInd Bank, ITC, Bharti Airtel and State Bank of India were among the winners.

In Asian markets, Seoul and Hong Kong settled lower while Shanghai ended in the green.

European markets were trading lower. The US markets ended mostly lower on Tuesday.

"The lack of fresh triggers and concerns over valuation influenced investors to stay sidelined. Weak global indicators, like contraction in China & Euro zone manufacturing data, added concerns about global economic recovery in 2024. Importantly, the market was waiting for the FED minutes later today for rate insights," said Vinod Nair, Head of Research at Geojit Financial Services.

India's manufacturing sector growth fell to an 18-month low in December amid softer increase in factory orders and output, despite minimal inflation, a monthly survey said on Wednesday.

The HSBC India Manufacturing PMI survey, conducted by S&P Global, showed that there were softer, albeit sharp, increase in factory orders and output, while business confidence towards the year-ahead outlook strengthened.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell from 56 in November to an 18-month low of 54.9 in December.

Global oil benchmark Brent crude declined 0.55 per cent to USD 75.47 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,602.16 crore on Tuesday, according to exchange data.

Sensex fell by 379.46 points or 0.53 per cent to settle at 71,892.48 on Tuesday. The Nifty declined by 76.10 point

Rupee gains 4 paise at 83.28 against $

The rupee appreciated 4 paise to close at 83.28 (provisional) against the US dollar on Wednesday, supported by easing crude oil prices and foreign fund inflows.

However, forex traders said the Indian currency remained under pressure amid a negative trend in domestic equities.

At the interbank foreign exchange market, the local unit opened at 83.30 against the greenback.

The rupee oscillated between an intra-day low of 83.33 and a high of 83.25 against the greenback and finally settled at 83.28 (provisional) against the dollar, higher by 4 paise from its previous close, even as domestic benchmark indices were trading in a negative note.

On Tuesday, the rupee settled at 83.32 against the dollar.

"The Indian rupee recouped morning losses, as the greenback traded steady ahead of the Federal Open Market Committee (FOMC) meeting minutes," said Dilip Parmar, Research Analyst, HDFC Securities.

"This week we have a data-heavy week starting Wednesday, we have payroll, we have ISM so it is obvious traders and investors are reducing exposures by moving away from crowded dollar short trade," Parmar added.

Parmar further noted that back home, spot USD-INR has been facing resistance near 83.50 and holding the support of 83.20. "Technically, there is a high probability of the pair moving towards 83.50 at a slower pace," he said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.08 per cent higher at 102.28 on Wednesday.

Oil slips further 

 Crude oil futures on Wednesday declined 1.53 per cent to Rs 5,852 per barrel as participants trimmed their positions on low demand.

On the Multi Commodity Exchange, crude oil for January delivery fell Rs 91 or 1.53 per cent to Rs 5,852 per barrel with a business volume of 14,758 lots.

Globally, West Texas Intermediate crude oil traded 0.47 per cent lower at $70.05 per barrel, while Brent crude futures, the global oil benchmark, declined 0.41 per cent to $75.58 per barrel.

Gold, Silver lack luster 

 Gold prices plunged Rs 230 to Rs 63,970 per 10 grams in the national capital on Wednesday amid a bearish trend in the overseas markets, according to HDFC Securities.

In the previous trade, the yellow metal ended at Rs 64,200 per 10 grams.

Silver also tumbled Rs 400 to Rs 78,400 per kilogram, while it had closed at Rs 78,800 per kg in the previous close.

In the international markets, gold and silver were trading lower at $2,059 per ounce and $23.60 per ounce, respectively.

Following a strengthening in the dollar index and a sharp rise in US treasury yields, gold prices came under pressure, Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.

Spot gold at Comex was trading at $2,059 per ounce, down by $14 from the previous close in the global markets.

Traders might refrain from placing aggressive bets before the Federal Open Market Committee (FOMC) December meeting minutes and US jobs openings data, which will be released on Wednesday, for more clarity on the Fed's monetary policy interest rate outlook, Gandhi said.