The domestic equity market opened in the red on Wednesday as both stock market benchmarks declined in the opening session. Nifty50 slipped below 18,000, while Sensex opened at 60, 295. Sensex lost more than 400 points to trade close to 60,000 mark, minutes after opening.

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Mahindra & Mahindra, ONGC and BPCL gained the most on Nifty 50, while Axis Bank, Tata Motors, and IndusInd Bank dragged the index most.

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The Bank Nifty was trading nearly 300 points down to 39,074.50 in the opening trade.

Market expert says that bulls are facing major hurdles from FIIs and reversal in trading strategy from 'buy on dips' to 'sell on rally' 

"Even though the market appears resilient, the bulls are facing major headwind in the form of sustained selling by FIIs. The 'buy on dips' strategy of retail investors and DIIs are countered with the 'sell on rally' strategy of FIIs. This tug of war between retail/DII vs FIIs is likely to continue in the short run. If the global environment for equity turns weak, accelerated selling by FIIs can trigger a minor short-term correction in the market," says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

Today's trading activity in the market is likely to be dominated by the listing and trading in Nykaa, he said. "Investors should not be carried away by the exuberance in the IPO market where IPOs are made at a huge premium. Even in this highly-valued market, there are some high-quality stocks available at reasonable valuations. For instance, in financial services and health care. Investors may look at such tried and tested names rather than chasing high priced IPOs driven by expectations," said the analyst 

In the pre-open session, 30-share Sensex lost 138 points to open at 60,295.26, while Nifty opened flat at 18,084.35. Six shares advanced, 22 declined and two remained unchanged, while Nifty saw 23 shares advancing, 26 trading in negative, while 1 one showed no change.

All major Asian indices were trading in negative in the early trade on Wednesday morning. Nikkei 225 lost 80 points to 29, 205, Hang Sang Index was down 0.36%, and Shanghai Composite lost 1.14% around 8.10 AM on Wednesday.

The US markets also saw profit booking as all important Wall Street indices closed with loss. Putting a brake to the record rally in the US markets, all major Wall Street indices closed in red. Dow Jones closed with loss of 110 points, Nasdaq Composite shed 96 points and S&P 500 lost 16 points on Tuesday's closing.