Global cues, oil prices dent Indian indices; banking stocks fall

Weak global cues along with profit booking dragged India's key equity indices into the red for the second consecutive session on Wednesday.

Beside this, higher crude oil prices impacted investors' sentiments.

See Zee Business Live TV Streaming Below:

Initially, both the key indices had a gap-down opening. They remained rangebound till mid-afternoon after which buying was triggered.

However, after filling the opening down gap they soon ran into selling pressure and dipped back into the negative zone.

Globally, Asian shares lost ground on Wednesday as worries over economic growth in China combined with fears of a global slowdown set in.

Sector wise, power, metals and realty indices gained the most, whereas banks, auto, capital goods and FMCG indices fell the most.

Notably, power stocks lead the gains as global power shortages have led to buying interest in the Indian power stocks.

Consequently, S&P BSE Sensex closed at 59,413.27 points, lower by 254.33 points or 0.43 per cent from its previous close.

Similarly, NSE Nifty50 edged lower. It fell to 17,711.30 points, lower by 37.30 points or 0.21 per cent from its previous close.

"Nifty shows volatility at higher levels. Buy the dip behaviour is observed among market participants as there is no follow through sell-offs," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Advance decline ratio has improved to above 1:1 and broad market indices like smallcap and midcap indices ended in the positive outperforming the Nifty, 17,576-17,802 could be the range for the Nifty over the near term."

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "Global cues were weak on concern over rising US Treasury yields, deepening concerns over persistent inflation, and contentious debt ceiling negotiations in Washington."

"Markets are likely to continue with its consolidation given the sharp run-up in the past few weeks and weak global cues. All eyes would be on US treasury yields, global energy prices and the ongoing debt ceiling debate in US which would provide market direction in near term. Tomorrow, monthly F&O expiry could also keep the market volatile."

In addition, Vinod Nair, Head of Research at Geojit Financial Services said: "Domestic market started on a very negative trend due to global sell-off and high crude prices."

"Spiking US treasury yields and slowing economy were impacting growth stocks. During the day, European and Asian markets recovered and crude prices stabilised. Indian growth-oriented sectors like energy, metals and pharma also recovered strongly but selling continued on other sectors like private sector banks and consumption."