Indian Market Stumbles: Banking and Financial Stocks Drag Indices Down

The Indian stock market saw a downturn on Wednesday, with significant losses in banking and financial stocks impacting indices. While sectors like FMCG and Media showed gains, increased global volatility and selling pressure from foreign investors contributed to the market's uncertainty.

In a day marked by turbulence in the banking and financial sectors, the Indian stock market faced notable losses on Wednesday. The benchmark indices closed in the red, with the Nifty 50 dropping 126 points to settle at 24,340.85, and the Sensex down by 426.85 points, ending the session at 79,942.18.

The National Stock Exchange (NSE) witnessed sectoral indices for Bank, Auto, Financial Services, IT, Pharma, Healthcare, Consumer Durables, and Oil & Gas trading in negative territory. Conversely, sectors like FMCG, Media, Metal, Realty, and Midsmall Healthcare managed to register gains during trading hours, providing a glimmer of hope amidst the broader downturn.

Among the top performers on the NSE were Adani Enterprises, Hero MotoCorp, Tata Consumer Limited, Britannia, and Maruti. In contrast, Cipla, Shriram Finance, HDFC Life, Trent Limited, and Infosys emerged as the leading losers. Investment Advisor Gaurav Goel pointed to a reversal in the banking sector following solid performances in prior sessions as a primary cause. Meanwhile, the Nifty Smallcap 100 shone with marked gains, and the Nifty Midcap 100 also saw growth, mainly supported by the resilient performance in FMCG and Media sectors, while Financial Services lagged behind.

The market is grappling with increased selling pressure from Foreign Institutional Investors (FIIs), partially countered by buying support from Domestic Institutional Investors (DIIs). With the U.S. election looming, experts highlighted growing global volatility across asset classes and the resultant uncertainty. Despite challenging conditions, around 459 stocks hit upper circuits, with 2,892 advancing, while 1,040 declined and 79 remained unchanged, out of the 4,011 stocks traded. (ANI)

(With inputs from agencies.)