FX.co ★ Sensex Down for 2nd Day

On Wednesday, India's BSE Sensex declined by 0.3%, closing at 81,312, marking its second consecutive session of losses. The consumer goods sector was notably impacted, primarily due to a 3% drop in ITC. This followed British American Tobacco (BAT), its largest shareholder, announcing a plan to divest a 2.5% stake valued at $1.5 billion—marking their second major divestment after a 3.5% sale last year. Nestlé India also experienced a nearly 2% decline attributed to profit booking post recent gains, alongside a cautious outlook within the FMCG sector. Conversely, Bajaj Finance and Bharti Airtel showed strength, spurred by sustained positive market sentiment after releasing robust financial results. However, overall market sentiment remained subdued owing to concerns over decreasing foreign investment inflows. Additionally, investor apprehension was evident ahead of the anticipated release of India’s Q1 GDP figures and the minutes from the latest US Federal Reserve meeting, both of which are expected to provide insights into future central bank policy directions.