Indian stocks concluded slightly lower on Wednesday following a trading session marked by narrow fluctuations.
The S&P BSE Sensex saw a decline of 117.58 points, or 0.16 percent, landing at 72,987.03. This drop interrupted a three-day upward trend, even amid a decline in both the dollar index and U.S. bond yields. Similarly, the broader NSE Nifty index decreased by 17.30 points, or 0.08 percent, to close at 22,200.55. This slide was primarily attributed to concerns over Foreign Institutional Investor (FII) selling ahead of the 2024 Lok Sabha election results.
Key laggards included Britannia Industries, Eicher Motors, Asian Paints, Bajaj Auto, and Tata Motors, all of which saw their shares drop by approximately 2 percent. Conversely, Public Sector Undertakings (PSU) stocks led the gainers, with Power Grid Corp, BPCL, and Coal India climbing 2-4 percent.
Cipla surged by 3.6 percent following a series of block deals, while Bharti Airtel rose 2.5 percent despite a 31 percent decrease in its Q4 net profit.
Meanwhile, global market indicators were mixed. The dollar and bond yields fell after Federal Reserve Chair Jerome Powell characterized the producer price index report as mixed, suggesting he does not anticipate a rate hike in the near future. The dollar hit a one-month low against the euro ahead of the release of significant U.S. Consumer Price Index (CPI) data later in the day.
In European trade, oil and gold prices edged higher due to dollar weakness and growing tensions in the Middle East. Intense gunfights erupted in northern Gaza's Jabalia and southern Rafah as Israeli military actions against Palestinian armed groups escalated.
Media reports indicate that the Biden administration is set to proceed with over $1 billion in arms deals for Israel, following a brief halt to a bomb shipment last week owing to apprehensions about Israel's planned offensive on Rafah.
