Sensex, Nifty fall almost 1%, rupee slumps 40 paise

Mumbai

Key equity benchmark indices on Wednesday fell close to 1% on continued selling pressure.

The S&P BSE Sensex fell 509.29 points, or 0.89%, to 56,598.28 points. Sensex stocks which lost the most include ITC (2.97%), Axis Bank (2.84%), Reliance (2.645), Tata Steel (2.41%) and State Bank (2.04%).

The NSE Nifty 50 too declined 148.80 points, or 0.87%, to 16,858.60.

“Markets are not seeing any relief [due to] feeble global cues and a [breach] of 16,800 in Nifty could further dampen sentiment,” said Ajit Mishra, VP - Research, Religare Broking.

“Meanwhile, oversold positions in select index majors may result in a marginal bounce in between. We reiterate our view to focus more on risk management and prefer defensive,” he added.

Vinod Nair, Head of Research, Geojit Financial Services said: “Investors continue to be sceptical of the domestic market’s higher premium amid the ongoing global deceleration while foreign investors are fleeing emerging economies in search of safer havens.

“Although the domestic economy is buoyed by solid fundamentals, the stock market’s appetite for risk has been hindered by the rising worries of a worldwide recession,” he added.