The S&P BSE Sensex fell 120 points, or 0.14%, to end at 84,559.65, while the NSE Nifty 50 slipped 41 points, or 0.16%, to close at 25,818.55.
On the 30-share Sensex, losses were led by Trent, HDFC Bank, ICICI Bank, Adani Ports and Bajaj Finserv, with each stock falling between 1% and 2%.
Sectorally, state-owned lenders outperformed, with the PSU Bank index rising 1.2%. That strength was offset by sharp losses in media stocks, which slid 2%, while private banks, real estate, consumer durables, fast-moving consumer goods and healthcare stocks declined between 0.4% and 1%.
The selloff was broader beyond the benchmark indices, with mid-cap shares ending the session down 0.5% and small-caps retreating 0.7%.
Expert views
Global market signals remain mixed and rising Japanese bond yields point to tighter liquidity and pressure on equity valuations, while soft U.S. labour data amplifies recession concerns and strengthens expectations of a more accommodative Fed, said Vinod Nair, Head of Research at Geojit Investments.
“Domestically, the RBI’s efforts to stabilise the rupee lent support to rate-sensitive sectors. Foreign investors are pulling out funds, and emerging markets are struggling, while developed economies remain strong, showing that investors are becoming more cautious about emerging markets. Although currency stability offers temporary relief, global uncertainty and sustained foreign selling keep upside potential limited, leaving markets skewed toward a bearish bias,” said Nair.
Global Markets
Britain’s pound slid on Wednesday after softer-than-expected inflation data reinforced expectations that the Bank of England will begin cutting interest rates, while oil prices rebounded from recent losses after U.S. President Donald Trump ordered a blockade on sanctioned oil tankers entering and leaving Venezuela.
Across Asia, risk sentiment was modestly positive. MSCI’s broad index of Asia-Pacific shares excluding Japan rose 0.35% overnight, while Japan’s Nikkei finished the Tokyo session with comparable gains.
U.S. equity futures pointed to a slightly firmer open later in the day, with contracts tied to the S&P 500, Dow Jones Industrial Average and Nasdaq all edging higher ahead of the resumption of Wall Street trading.
In rates markets, Fed funds futures continued to price in roughly two U.S. interest-rate cuts next year, as the latest labour-market data failed to materially alter expectations. Investors are now focused on Thursday’s release of U.S. November inflation data for clearer direction.
Benchmark 10-year U.S. Treasury yields edged up 0.5 basis points to 4.15% in early European trading, retracing a portion of Tuesday’s 3.5-basis-point decline that followed the U.S. payrolls report.
Crude impact
Oil prices climbed more than 1% Wednesday after U.S. President Donald Trump ordered what he described as a “total and complete” blockade of sanctioned oil tankers moving in and out of Venezuela, injecting fresh geopolitical risk into markets already uneasy about the outlook for global demand.
Brent crude futures rose 87 cents, or 1.5%, to $59.79 a barrel by 0730 GMT, while U.S. West Texas Intermediate gained 85 cents, also about 1.5%, to $56.12 a barrel.
Rupee vs Dollar
The Indian rupee staged a sharp rebound on Wednesday, recording its strongest single-day gain in nearly two months after forceful intervention by the Reserve Bank of India arrested a five-session slide and curbed emerging speculative pressure on the currency.
The rupee settled at 90.38 against the U.S. dollar, a gain of about 0.7% from Tuesday’s close of 91.0275.
Elsewhere in Asia, currencies came under pressure as the dollar strengthened broadly. The dollar index rose nearly 0.4% to 98.6, weighing on regional peers.
(with inputs from agencies)