Share Market Update:

In the fast-paced world of stock trading, Wednesday witnessed a consistent decline in the domestic share market. The BSE Sensex took a sharp nosedive of 796 points. This slump in the market was primarily due to heavy selling in the shares of banks and petroleum companies on the global level ahead of the Federal Reserve’s policy decision.

Market Volatility and Concerns

During the trading session, the Sensex had tumbled as much as 868.7 points, causing concerns among investors. The Nifty of the National Stock Exchange also witnessed a decline of 231.90 points, closing below the 20,000 mark at 19,901.40 points. Analysts have pointed out that the yield on U.S. bonds has reached a 16-year high. Additionally, the anticipation of rising inflation due to higher crude oil prices has also affected investor sentiment.

HDFC Bank Leads the Decline

The cautious trend in the market came as a result of decisions by central banks of various countries and the withdrawal of foreign funds. This week, the U.S. Federal Reserve, Bank of England, and the Bank of Japan are set to hold meetings. HDFC Bank took the hardest hit among Sensex companies, plummeting by four percent. Other major losses were observed in stocks such as JSW Steel, Reliance Industries, UltraTech Cement, Maruti, Tata Steel, Vipro, Tech Mahindra, Bharti Airtel, and Larsen & Toubro.

On the flip side, stocks that remained in the green included Power Grid, Asian Paints, Sun Pharma, Axis Bank, NTPC, ITIC, and Infosys. In the Asian markets, the Nikkei in Japan, Shanghai Composite in China, and the Hang Seng in Hong Kong experienced losses, while the Kospi in South Korea registered gains. In Europe’s major markets, early trading saw positive momentum.

U.S. Market Impact and Crude Oil Prices

In the U.S. market, Tuesday witnessed a decline, and during this time, the global oil benchmark, Brent Crude, remained at $93.18 per barrel with a 1.23 percent drop. According to market data, foreign institutional investors sold shares worth Rs 1,236.51 crore on Monday. The stock market was closed on Tuesday on the occasion of ‘Ganesh Chaturthi.’

In conclusion, the domestic share market faced significant turbulence on Wednesday, driven by global economic factors and uncertainties surrounding central bank decisions. Investors are keeping a close watch on developments in the international financial landscape, and the market’s performance in the coming days will depend on various economic indicators and policy decisions.