BENGALURU, May 29 (Reuters): Indian benchmarks saw their worst session in nearly three weeks on Wednesday, dragged down by heavyweight financials and information technology stocks amid uncertainty around domestic election results and the timing of US rate cuts.
The blue-chip NSE Nifty 50 closed 0.8 per cent lower at 22,888.15 points, while the S&P BSE Sensex settled 0.9 per cent lower at 75,170.45 points, as of 3:30 p.m. IST.
Financial services stocks ended 1.65 per cent lower, snapping four sessions of gains. HDFC Bank dropped 1.5 per cent, snapping a five-day winning streak.
The Nifty bank index dropped 1.3 per cent.
Meanwhile, the volatility index eased slightly during the session but hovered near two-year highs.
Uncertainty about the margin of victory for the ruling Bharatiya Janata Party has driven volatility, analysts said. Vote counting will take place on June 4.
"Investors are booking profits and waiting anxiously as we enter a big event (election outcome) next week," Narendra Solanki, research head at Anand Rathi said.
"Volatility will remain elevated and the markets will only see a definite move post the results," Solanki added.
US-rate cut sensitive IT stocks ended 1 per cent lower.
Global equities traded lower as doubts about the timing and extent of Federal Reserve rate cuts resurfaced.
Paytm ended 5 per cent higher on a media report that Indian billionaire and Adani Group chairman Gautam Adani was looking to buy a stake in the digital payments firm. Adani Enterprises closed 0.5 per cent higher.
Indian benchmarks fall most in 3 weeks
FE Team | Published: May 29, 2024 23:51:08
Indian benchmarks fall most in 3 weeks
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