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Stock market benchmark indices fell in initial trade on Wednesday tracking weak global trends ahead of the release of minutes of the Federal Open Market Committee (FOMC) meeting.
The BSE Sensex fell 329.12 points to 60,343.60 after a weak beginning. The NSE Nifty declined 97.3 points to 17,729.40.
From the Sensex pack, IndusInd Bank, Wipro, UltraTech Cement, Power Grid, Bajaj Finserv, HCL Technologies, Tata Motors, Infosys, NTPC, and Bajaj Finance were the major laggards.
Maruti and Larsen & Toubro were the winners.
In Asian markets, South Korea, Japan, China, and Hong Kong were trading lower.
Also read: Asia equities fall on fear of hawkish central bank hikes
The US markets had ended significantly lower on Tuesday.
"US stocks tumbled led by growing concerns that the Federal Reserve will keep interest rates higher for longer," said Mitul Shah, Head of Research – Institutional Desk, Reliance Securities Ltd.
The BSE benchmark had edged down 18.82 points or 0.03 per cent to settle at 60,672.72 on Tuesday. The Nifty slipped 17.90 points or 0.1 per cent to end at 17,826.70.
Also read: Rupee declines 4 paise to 82.83 against US dollar
International oil benchmark, Brent crude, declined 1.21 per cent to $83.01 per barrel.
"The US macro data continues to dictate equity markets globally. The US markets reacted sharply negatively to the series of economic data indicating that the process of disinflation is slow and, therefore, the Fed will have to continue raising rates longer than expected earlier.
Also read: Stocks that will see action on February 22, 2023
"This pushed up the 10-year bond yield sharply to 3.95 per cent and stocks fell sharply. These negative US equity market trends are impacting equity markets everywhere and India cannot be an exception to this trend at least in the near term," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign Portfolio Investors (FPIs) bought shares worth ₹525.80 crore on Tuesday, according to exchange data.
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