Market retreats for 2nd day on negative global cues

Mumbai Equity benchmarks stayed on the backfoot for the second session running on Thursday, mirroring the nervousness in global markets after minutes of the US Fed's previous meeting revealed discussions around tapering its asset purchase programme.

After touching the 50,000-mark in opening trade, the 30-share BSE Sensex was dragged lower by selling in banking and energy counters. It finally finished at 49,564.86, down 337.78 points or 0.68 per cent. On similar lines, the broader NSE Nifty gave up the 15,000-level to close 124.10 points or 0.83 per cent lower at 14,906.05. ONGC was the top loser among the Sensex constituents, tumbling 2.70 per cent, followed by Sun Pharma, PowerGrid, Axis Bank, HDFC Bank, Bharti Airtel, Kotak Bank and Nestle India.

On the other hand, M&M, IndusInd Bank, Titan, L&T, Bajaj Finserv and Infosys were among the gainers, climbing up to 2.47 per cent. "Domestic market witnessed selling due to lack of further domestic cues and weak global market. Wall Street has extended its losses as US treasury yield and dollar index jumped post the release of a watchful Fed minutes, which was below the expectations.

"Fed minutes signalled a plausible slowdown in bond buying 'at some point', a shift in policy in the future, which will have an implication on emerging markets," said Vinod Nair, Head of Research at Geojit Financial Services. Binod Modi, Head - Strategy at Reliance Securities, said the visible decline in daily Covid-19 cases in India has offered comfort to investors. "However, minutes of FOMC meeting indicates diversions among members' view about higher inflation and accommodative stance and ECB's warning toward potential bubble in financial assets do not bode well for global equities, including India. "This raises concerns about possible taper tantrum in early 2022, which is also expected to weigh on investors' sentiments in coming week and can be a headwind for market...," he added. Metal stocks witnessed heavy selling pressure after China's move to curb commodity prices in the country, he pointed out.