Sensex closed 0.76 per cent at 27,057.41 and Nifty fell 0.72 per cent to 8,094.10
Picture for representational purpose
Mumbai: The BSE Sensex and the Nifty fell for a second consecutive session on Wednesday, retreating from record highs hit early this week, as worries that the Federal Reserve would raise interest rates sooner than expected hit blue-chips such as Infosys. Falls tracked lower global shares after a paper from the San Francisco Federal Reserve Bank released on Monday argued that investors could be underestimating the speed at which the U.S. central bank might raise interest rates.
Foreign investors have been a key driver of this year’s record-setting rally in Indian shares, and as of Tuesday had been net buyers for a seventh consecutive session, bringing their total for the year to $13.94 billion.Caution is also expected to prevail ahead of the consumer inflation data due on Friday, the last one before the Reserve Bank of India’s policy review on Sept. 30.
“Today’s fall is more of a technical correction, which will give a better entry for fresh participants. A larger amount of capital investment is awaited. We are relatively more positive towards the market," said Deven Choksey, MD, KR Choksey Securities.The benchmark Bombay Stock Exchange (BSE) Sensex closed down 0.76 per cent at 27,057.41, retreating further from a record high of 27,354.99 hit on Monday.
The broader Nifty fell 0.72 per cent to 8,094.10, moving away from its record high of 8,180.20 hit on Monday.Blue-chips, which have traditionally attracted the bulk of foreign investments, led falls. Reliance Industries Ltd fell 1.7 per cent, adding to its 0.5 per cent drop on Tuesday, while Infosys Ltd closed down 1.8 percent.
Indian Tobaco Company (ITC) Ltd fell 2 per cent after a newspaper reported that the government was considering tougher regulations on tobacco, including banning the sale of loose cigarettes. An ITC spokesman was not immediately reachable for comments.
( Source : reuters )
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