Sensex and Nifty lose early gains on Wednesday
Benchmark indices pared gains amid profit booking and weak global cues from Asian and US markets.
The benchmark indices Sensex and Nifty pared their early gains on Wednesday, according to Moneycontrol. The Sensex fell approximately 500 points from its daily high due to profit booking at higher levels.
By 11 a.m., the Sensex was trading at 76,869.25, down 48.60 points or 0.06 per cent, while the Nifty fell to 23,793.80, down 17.05 points or 0.07 per cent. Earlier in the session, the Sensex had jumped 478.19 points or 0.62 per cent to 77,396.04, and the Nifty had advanced 135.5 points or 0.56 per cent to 23,946.35.
The market decline occurred as Asian markets saw sharp losses, with Japan's Nikkei 225 falling more than 4 per cent. The MSCI Asia Pacific Index fell as much as 2.3 per cent, led by technology stocks. Concerns regarding artificial intelligence spending and potential regulatory scrutiny following a possible Democratic victory in US midterm elections contributed to the weakness.
In the US, S&P 500 futures fell 1 per cent, Nasdaq-100 futures declined 1.7 per cent, and Dow Jones Industrial Average futures were down 341 points or 0.6 per cent. Investors are also questioning if heavy investments in AI-related firms will generate adequate returns.
Enrich Money research analyst Ponmudi R said the Nifty attracted buying interest in early trade, reflecting resilience at lower levels. He noted that 23,600 remains the immediate support, while the 24,000 mark is the immediate resistance to watch.