The Indian stock markets looked set to take a break from their losing streak on Wednesday. The BSE Sensex rang the opening bell near 84,800, soaring more than 200 points, while the NSE Nifty50 began the day above 25,950, jumping 67 points, around 9:15 AM.
Notably, the indications in the pre-open session remained mixed. Around 9:06 AM, the Sensex tanked close to 150 points and breached 84,500, and the Nifty inched closer to 25,800.
In the previous trading session on Tuesday, sentiment remained bleak among investors as both benchmarks closed lower for the third straight session. This downfall could be attributed to weakness in IT and auto stocks, coupled with persistent foreign fund outflows, which weighed on sentiment.
The Sensex slipped over 300 points to finish at 84,587.01, with 24 of the 30 components ending in the red. The Nifty also ended lower, declining 74.70 points to 25,884.80. With this, the Nifty lost 307 points, over 1 per cent, across three sessions since Friday, falling below the 26,000 mark. The Sensex, during the same period, shed 1,045 points, or 1.2 per cent.
According to Vinod Nair, Head of Research at Geojit Financial Services, trade remained volatile on the monthly expiry day as the market grappled with a weakening INR and continued FII outflows. He added that investors stayed cautious ahead of clarity on a potential rate cut in the upcoming FOMC meeting and updates on the Indo-US trade deal, despite some improving cues.
