Sensex, Nifty snap three-day winning streak amid weak global cues

On Wednesday, Indian stocks snapped a three-day winning streak, dragged down by heavyweight financial companies and metals stocks, with caution on… The dilemma of the US debt ceiling Heavy on stock markets around the world.

account Nifty 50 The index closed down 0.34 percent at 18,285.40, while the benchmark index closed S&P BSE Sensex It fell 0.34 percent to 61,773.78 points.

Financial stocks lost 0.80 percent, with ICICI Bank Ltd And HDFC Bank Ltd Among Nifty’s top 50 losers.

Metal stocks, which have jumped in the past three sessions, lost more than 1.5 percent. Adani Enterprises Ltd, which has a 17 percent weighting in Nifty, lost 6 percent and was the biggest loser in the index. The stock has risen 40 percent over the past three sessions.

Growing uncertainty over US debt ceiling talks, nine days before a possible default, and hawkish comments from two Fed officials also weighed on sentiment. Asian markets remained weak.

“It is prudent to exercise caution. The US debt ceiling negotiations continue to create ripples, casting a shadow over the markets,” said Prashant Tapsi, Senior Vice President of Research at Mehta Equities Ltd.

Investors are also awaiting the minutes of the latest Fed policy meeting scheduled at 11:30 PM IST on Wednesday, to get clues about the future interest rate path of the US central bank.

Pharmaceutical stocks advanced more than 1 percent, led by a more than 2 percent rise in Sun Pharmaceuticals Ltd. after global brokerage Macquarie reiterated its “outperforming” rating on the company’s Taro Pharmaceuticals unit’s strong quarterly results. Sun Pharma was the biggest gainer for the Nifty 50.

Among individual stocks, Mahindra CIE Automotive Ltd jumped nearly 5 percent as 3.24 percent of the shares traded in block deals after Mahindra & Mahindra Ltd sold its 3.195 percent stake in the company.