Sensex is down due to sectors weakness
Indian shares slumped 771 points or 1.0% to 79,580 in early trading on Wednesday, halting the previous session’s gains. All sectors experienced declines, with the auto sector leading the downturn.
The Nifty 50 index dropped 1.0% to below 24,200, driven by a 2.3% slump in the automotive sector following a significant price reduction of Mahindra & Mahindra’s SUV XUV 700.
Traders engaged in profit-taking after the BSE Sensex and Nifty 50 hit fresh record highs on Tuesday. Investor sentiment was also affected by comments from Fed Chairman Jerome Powell, who indicated that a rate cut is unlikely until inflation consistently moves toward the 2% target.
Market participants are bracing for the first quarter FY25 earnings season, with TCS reporting on July 11th. Additionally, they are closely watching the upcoming India consumer price index for June and US consumer price data for insights into the Fed’s monetary policy direction.
Other early decliners included Shriram Finance (-2.5%), Hindalco (-2.1%), Tata Steel (-2.1%), and HCL Tech (-2.0%).
