Indian stock market erased most of its intraday gains on Wednesday, with the Sensex recording marginal gains and Nifty slipping into the red, with Nifty Smallcap 100 and Nifty Midcap 100 indices crashing more than 1% each.
“Domestic equities ended lower amid weak global cues, as investors turned cautious ahead of a key US inflation print likely to influence the Fed’s policy trajectory. Early gains were reversed due to profit booking, while subdued oil prices, despite fresh geopolitical developments, offered limited support. FMCG stocks outperformed on expectations of price hikes, and private banks advanced following the RBI's easing of FCNR(B) and ECB norms, whereas metals lagged due to softer commodity prices. Although domestic bond yields were lower due to steady foreign interest following the recent policy support to debt markets, slowing mutual fund inflows highlighted emerging pressure on equities amid the ongoing geopolitical uncertainties,” said Vinod Nair, Head of Research of Geojit Investments.
