Stock markets halt three-day gaining streak on weak global trends

Mumbai, May 24 (PTI) Benchmark stock indices closed lower on Wednesday, snapping their three-day gaining streak following profit-taking in financials, metal and oil shares amid a bearish trend in the global markets.

The 30-share BSE Sensex fell 208.01 points or 0.34 per cent to settle at 61,773.78 in volatile trade. The index opened lower but bounced back in late-morning deals to hit a high of 62,154.14. The barometer later gave up gains to hit a low of 61,708.10 in line with weak European markets.

The broader NSE Nifty declined 62.60 points or 0.34 per cent to end at 18,285.40 after losses in Adani Entertainment, Adani Ports and Tata Motors.

Among the Sensex firms, Tata Motors, HDFC Bank, ICICI Bank, HDFC, Bajaj Finserv, Reliance Industries, Hindustan Unilever, Larsen & Toubro, Asian Paints and Tata Steel were the major laggards.

Sun Pharma, Titan, ITC, IndusInd Bank, Tech Mahindra and Power Grid were among the winners.

“The domestic market experienced a short-lived rally that was overshadowed by subdued global market sentiment. US Treasury yields rose due to concerns over stalled US debt ceiling talks and hawkish comments from US Fed officials, which reduced the chances of a rate pause,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market participants are waiting for the release of the FOMC meeting minutes, scheduled for Wednesday.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended lower.

Equity markets in Europe were trading in the red. The US market ended in the negative territory on Tuesday.

Meanwhile, global oil benchmark Brent crude climbed 1.89 per cent to USD 78.29 a barrel.

Foreign Institutional Investors (FIIs) were buyers on Tuesday as they bought equities worth Rs 182.51 crore, according to exchange data.

The BSE benchmark settled at 61,981.79, a marginal gain of 18.11 points or 0.03 per cent on Tuesday. The Nifty went up by 33.60 points or 0.18 per cent to end at 18,348.