Markets fall after 2-day break on weakness in Asian markets

US markets posted smart gains on Tuesday

US markets posted smart gains on Tuesday

The Sensex and Nifty started trading on a muted note on Wednesday and slipped into negative territory after a two-day break, following weak trends in Asian markets.

The incessant outflows of foreign funds have also played spoilsports on the markets. The 30-stock BSE Sensex traded 418.07 points lower at 52,114. The NSE Nifty fell 131.1 points to 15,507.70.

In the Sensex pack, Bajaj Finserv, Tata Steel, Bajaj Finance, Axis Bank, IndusInd Bank, Tech Mahindra and Bharti Airtel were the major laggards in the early trades.

In contrast, Dr. Reddy’s Laboratories, Maruti Suzuki India and Hindustan Unilever were the winners.

Elsewhere in Asia, markets in Hong Kong, Seoul, Shanghai and Tokyo were trading lower.

US markets posted smart gains on Tuesday.

“Pullback rallies can be sharp and they were sharp yesterday. The important question is – will this continue? There is no economic news, other than crude weakness, to support the rally. There is no reason for FIIs to change their selling strategy as the dollar continues to be strong and US bond yields are attractive and expected to rise further,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The BSE Sensex climbed 934.23 points or 1.81% to settle at 52,532.07 on Tuesday. The NSE Nifty climbed 288.65 points or 1.88% to end at 15,638.80.

Meanwhile, the international crude oil benchmark Brent fell 3.20% to $110.98 a barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth ₹2,701.21 crore on Tuesday, according to exchange data.

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