Mumbai: Indian equity markets opened sharply lower on Wednesday amid broad-based selling, driven by weak global cues, rising crude oil prices and investor caution ahead of the US Federal Reserve’s policy decision.
In early trade, the BSE Sensex plunged 684 points, or 0.93 per cent, to 72,914, while the NSE Nifty dropped 167 points, or 0.74 per cent, to 22,581. Mid- and small-cap indices showed a mixed trend, with the Nifty Midcap 100 declining 0.39 per cent and the Nifty Smallcap 100 edging up 0.06 per cent.
IT and FMCG Lead Declines
Most sectoral indices traded in the red. The Nifty IT index was among the worst hit, falling 3.2 per cent, while the FMCG index slipped 1.63 per cent. Nifty Auto was the sole sector to hold in positive territory, gaining around 0.36 per cent.
Market experts noted that the Nifty had closed the previous session at 22,749. For the current session, strong support is seen in the 22,500–22,550 zone, with resistance placed at 22,850–22,900. For Bank Nifty, support is expected around 53,800–54,000, while resistance is likely at 54,600–54,800.
Interestingly, while Indian markets declined, several other Asian markets, including those in China, Japan, Hong Kong and South Korea (where the Kospi surged 6.2 per cent), traded higher. US markets had also closed with gains in the previous session.
On the institutional front, foreign institutional investors (FIIs) had made net purchases of ₹4,240 crore on Tuesday, while domestic institutional investors (DIIs) were net sellers to the tune of ₹1,250 crore. Attention for the rest of the day remains focused on corporate quarterly results and the upcoming Federal Reserve decision.
