Indian shares fell for a second straight session, a day ahead of the Brexit referendum, while Tata Motors declined on worries that its unit Jaguar Land Rover would be hit if Britain leaves the European Union.
The 30-share BSE index Sensex ended lower by 47.13 points or 0.18 per cent at 26,765.65 and the 50-share NSE index Nifty ended down 16.2 points or 0.2 per cent at 8,203.70.
Among BSE sectoral indices, auto index fell the most by 0.77 per cent, FMCG 0.57 per cent, capital goods 0.4 per cent and power 0.34 per cent. On the other hand, healthcare index was up 0.42 per cent, realty 0.24 per cent and metal 0.02 per cent.
Top five Sensex gainers were Adani Ports (-1.87%), Dr Reddy's (-1.76%), Coal India (-1.25%), Lupin (-1.04%) and Hero MotoCorp (-0.7%), while the major losers were Tata Motors (-2.58%), GAIL (-1.88%), HUL (-1.43%), ITC (-1.12%) and Reliance (-0.68%).
Brexit referendum
Investors have been on the edge amid uncertainties whether Britons will vote to remain in the 28-member trading bloc on Thursday. An opinion poll on Tuesday showed support for the “IN" camp declined after hopes of a “Bremain” emerged following British MP Jo Cox's death.
Sentiment was also subdued after US Federal Reserve Chair Janet Yellen had said on Tuesday the outcome of 'Brexit' would have "significant repercussions” on the US economy and that a rate hike would depend on a rebound in hiring.
The Reserve Bank of India said it “will take all necessary steps, including liquidity support, to ensure orderly conditions in financial markets''.
“Despite reacting to domestic cues such as changes in foreign direct investment policies as announced on Monday, Indian markets remain uncertain over the UK's referendum and, hence, mirroring global sentiment,” said Anand James, chief market analyst at Geojit BNP Praibas Financial Services.
Global markets
European shares rose on Wednesday, with two key regional indexes hitting their highest level in more than two weeks, as firmer financial stocks led markets higher.
The pan-European STOXX 600 index and the similar FTSEurofirst 300 index both climbed 0.4 per cent to their highest level in more than two weeks, with both also set for their fourth straight day of gains.
Asian stocks edged up on Wednesday as nervous investors counted down to Britain’s make-or-break European Union referendum, while Federal Reserve Chair Janet Yellen’s cautious tone on future rate hikes added to a subdued mood in markets.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent. Japan’s Nikkei extended losses to shed 1 per cent.
US stocks rose on Tuesday, led by gains in technology shares as Federal Reserve Chair Janet Yellen was optimistic about the economy and played down the risk of a recession, while concerns over the upcoming British referendum remained subdued.