In a repeat of the previous day's trade, Indian benchmark indices opened higher, but gave up the gains and ended in the negative towards the close on June 23. In the process the Nifty snapped a two day rally. At close, the Nifty was down 85.80 points or 0.54% at 15687.
Volumes on the NSE were lower than the recent average for the third consecutive session. Among sectors, Auto and Consumer Durables gained the most while Oil & Gas and Metals fell the most.
Moody's Investors Service on Wednesday slashed India's growth projection to 9.6 per cent for 2021 calendar year, from its earlier estimate of 13.9 per cent, and said faster vaccination progress will be paramount in restricting economic losses to June quarter.
India's Household financial savings rate dropped to 8.2% of GDP in the three months ended December 2020 from 10.4% in the preceding quarter, according to preliminary estimates published by the Reserve Bank of India. Household liabilities from commercial banks rose to 27% of the GDP in the third quarter of FY21 from 26.3% in the previous three months.
Most Asian stock markets followed Wall Street higher on Wednesday after the Federal Reserve chairman said higher U.S. inflation probably is temporary, helping to calm fears central bankers might feel pressure to roll back economic stimulus. European stocks struggled on Wednesday, despite fresh data showing eurozone business activity growing at the fastest rate in 15 years. IHS Markit flash eurozone composite purchasing managers index for June climbed to 59.2 from 57.1 in May, and marking an 180-month high.
Nifty formed an engulfing pattern on daily charts which is bearish for the near term. 15840-15900 remains a tough resistance to breach as has been seen over the past 7 odd sessions. On falls so far 15675 has provided support; but now the figure could shift to 15451-15560. Low volumes continue to suggest low trading interest due to low volatility in largecap and midcap space. This is despite individual stocks showing momentum on successive days.