The benchmark BSE Sensex lost 312.53 points or 0.40% to close at 78,271.28, while the broader Nifty 50 index closed at 23,696.30, lower by 42.95 points or 0.18%.
The market capitalization of all listed companies on the BSE increased by Rs 95,290 crore to Rs 427.19 lakh crore.
Sector Watch
From the Sensex pack, Asian Paints, Titan, Nestle India, Hindustan Unilever (HUL) were among the top losers, with Asian Paints shares closing 3.4% lower after the paint maker missed third quarter profit estimates, reporting a 23% YoY decline in its profit.
Asian Paints was also the top loser on the Nifty 50 index, closely followed by Titan, which closed 3% lower after the consumer discretionary major reported a marginal dip in its third quarter consolidated net profit.
Consumer stocks took the biggest hit, with the Nifty FMCG index falling 1.6% and the Nifty Consumer Durables index dropping 1%, wiping out the gains seen on February 1 during the post-Budget rally in consumer stocks.Energy and state-owned companies advanced, with the Nifty Energy index rising by 1.4% and the Nifty Oil and Gas index climbing 1.5%. ONGC led the rally, surging 3% after its production outlook for fiscal years 2025-28 was revised upward, prompting Macquarie to upgrade the stock to “outperform” from “neutral.” Meanwhile, oil marketing giants BPCL and HPCL saw their shares increase by 2% and 3%, respectively, following Goldman Sachs’ upgrade to “buy” from “neutral,” citing favorable earnings outlook for both companies.
Among individual stocks, state-owned telecom firm MTNL surged 18% following a statement from a senior government official confirming that the government will support MTNL and BSNL in monetizing their assets.
Global Markets
Global shares saw a decline on Wednesday, as disappointing earnings from Google parent Alphabet weighed on Wall Street futures.
While market volatility has been high in recent days, driven by U.S. President Donald Trump’s announcements on tariffs against Canada and Mexico followed by a quick reversal and delay, some stability returned on Wednesday. Despite the tariff delays alleviating some concern over the Federal Reserve’s potential interest rate cuts, caution persisted, particularly with the ongoing trade tensions between the U.S., China, and Europe.
Asian markets also struggled on Wednesday, with Shanghai and Hong Kong among the biggest losers. Hang Seng lost 1.1%, while Shanghai Composite index was down 0.7%. Meanwhile, Japan’s Nikkei 225 rose 0.1%.
Elsewhere in the domestic market, the Reserve Bank of India is expected to deliver a 25 basis-point rate cut on Friday, supporting a growth revival following the announcement of personal tax cuts.
Currency Watch
The Indian rupee fell to a record low on Wednesday, as a sharp afternoon decline triggered stop losses amidst a prevailing bearish sentiment and expectations of a potential rate cut later in the week. The currency dropped to 87.4875 against the U.S. dollar before settling at 87.4650, marking a 0.4% decrease on the day.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.35% lower at 107.58.
Crude Impact
Oil prices edged lower on Wednesday, as rising U.S. stockpiles and concerns over a potential new Sino-U.S. trade war heightened fears of slower economic growth. These worries outweighed U.S. President Trump’s renewed efforts to eliminate Iranian crude exports.
Brent crude futures were down 66 cents, or 0.87%, at $75.54 a barrel by 1007 GMT.
FII/DII Tracker
Foreign institutional investors (FIIs) were net buyers on February 4, purchasing equities worth Rs 809.23 crore, while domestic institutional investors (DIIs) turned net sellers, offloading equities worth Rs 430.70 crore.
