MUMBAI — Indian shares fell on Wednesday, with the benchmark Sensex declining more than 300 points as investors remained cautious amid pressure on financial stocks and mixed signals from global markets.
The 30-share BSE Sensex was lower by more than 300 points during trading, while the broader Nifty 50 also traded in negative territory. The decline followed a weak session for Indian equities on Tuesday, when the Sensex fell more than 450 points and the Nifty slipped below 24,450, according to market reports.
Selling pressure was concentrated in several large-cap stocks, particularly in banking and other financial companies. Recent trading data has shown weakness in financial shares weighing on the benchmark indexes, while gains in sectors including automobiles, oil and gas and some technology companies have provided only limited support.
Investors have also been monitoring movements in crude oil prices and the rupee. Rising oil prices can increase India's import costs and add pressure to inflation and the country's trade balance, while a weaker rupee can increase the domestic cost of dollar-denominated imports.
The decline came against a mixed global backdrop. Asian markets have shown divergent movements, while investors have continued to assess developments in international markets and expectations for U.S. monetary policy.
Indian equities have faced bouts of selling in recent sessions as foreign investor flows, currency movements and global risk sentiment influenced trading. The market has also remained sensitive to corporate earnings and changes in expectations for interest rates.
On Tuesday, Indian benchmark indexes ended lower, with the Sensex falling more than 450 points and the Nifty closing below 24,450. Market analysts cited rising crude prices, a weaker rupee, weak global cues and profit-taking among factors contributing to the decline.
The latest market move leaves investors focused on whether domestic institutional buying can offset continued selling pressure and whether global cues stabilize. The Sensex and Nifty remain the principal indicators of Indian equity-market performance, with the Sensex tracking 30 major companies listed on the BSE and the Nifty 50 tracking 50 companies on the NSE.
