Indian stocks traded lower on Wednesday as information technology stocks dragged the market lower amid volatility.
The BSE Sensex fell 250 points to 69,300 in morning deals. The NSE Nifty 50 index dropped over 70 points to quote below 20,850.
Software exporters led the declines, with Tata Consultancy Services, Infosys, and Tech Mahindra slipping over 1% each. Axis Bank and Bajaj Finserv also weighed on indexes.
In the broader market, mid and smallcap shares saw selective buying. Media and auto stocks rose, while the IT index tumbled nearly 1%.
small-cap
On Tuesday, benchmark indexes snapped a three-day rally as the Sensex shed 380 points and the Nifty declined 90 points on profit booking in banks, financials, and metals.
Analysts expect the choppiness to persist in the near term after the recent up move. While foreign fund inflows continue, investors remain cautious ahead of the RBI policy decision on Friday.
The central bank is expected to maintain rates this week but its commentary on inflation and growth will provide guidance.
In global markets, Asian shares were mixed as China’s Covid situation and uncertainty over rate hikes in the U.S. kept sentiment in check.
