Equity benchmark indices took a sharp plunge at Wednesday’s open tracking a global market selloff
Market Today: Equity benchmark indices took a sharp plunge at Wednesday’s open tracking a global market selloff following hotter-than-expected US inflation data that pushed Fed rate cut hopes further back to the second half of 2024. The BSE Sensex fell 600 points to 70,899 and the NSE Nifty50 slipped 150 points to 21,594.
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Wipro, Infosys, IndusInd Bank, HCLTech, Tech M, and Titan took the sharpest fall on the Sensex, while Eicher was the additional Nifty loser.
On the flip side, Reliance, BPCL, Adani Enterprises, and Adani Ports held gains on the frontline indices.
The BSE MidCap and SmallCap indices also declined 0.7-1 per cent.
Paytm down 9% after brokerages cut Paytm’s target price by 20-60% after RBI diktat
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It has been two weeks since the Reserve Bank of India imposed restrictions on Paytm Payments Bank (PPB). Following the diktat, foreign brokerages like CLSA, Morgan Stanley, Jefferies, Bernstein have cut their target prices for One 97 Communications (Paytm) by 20-60 percent, with Macquarie the biggest bear on the Street.
While restrictions on PPB do not directly impact the lending business, brokerages seem to be divided on the matter. Some brokerages see a huge customer exodus impacting loan distribution, while some say the impact will only be on the wallets business. PPB houses all of Paytm’s 33 crore wallets
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Global Cues
Tokyo stocks opened lower on Wednesday following falls on Wall Street after sticky US inflation data dampened hopes for quick interest rate cuts by the Federal Reserve.
Wall Street’s main indexes tumbled on Tuesday after a higher-than-expected consumer inflation reading pushed back market expectations of imminent interest rate cuts, driving US Treasury yields higher.
