Indian shares relinquished early gains to close slightly lower on Wednesday. The benchmark BSE Sensex, comprising 30 stocks, concluded the session down by 138.74 points, or 0.17 percent, at 80,081.98. This decline was attributed to worries over inflated valuations and continuous selling by foreign institutional investors amid escalating global uncertainties. Meanwhile, the wider NSE Nifty index fell by 36.60 points, or 0.15 percent, settling at 24,435.50.
Within the Nifty group, Power Grid Corp, Shriram Finance, Eicher Motor, Sun Pharma, and Mahindra & Mahindra experienced declines of 2-3 percent. In contrast, Bajaj Finance surged by 4.9 percent following an 80 percent increase in its Q2 net profit. Other gainers included HDFC Bank, Bajaj Auto, Tata Consumer Products, and Tech Mahindra, each rising by 1-2 percent.
Globally, market signals were varied. The dollar and bond markets remained strong, as expectations of aggressive Federal Reserve rate cuts eased. Additionally, concerns grew over the possibility of a fiscal crisis in the United States.
U.S. Treasury yields remained close to three-month peaks, as investors speculated on a potential Donald Trump presidency. There are concerns that Trump's policies, including tariffs and immigration restrictions, may lead to increased inflation and prolonged periods of elevated interest rates.
In commodities, gold continued its upward trend, achieving new record highs. Conversely, oil prices declined by approximately 1 percent in European trading. This downturn followed industry data indicating a rise in U.S. oil inventories and the Biden administration's renewed efforts to broker a ceasefire in the Middle East.
