Stock markets fall for fifth straight session

The stock markets continued their losing streak for the fifth straight session on Wednesday as the benchmarks ended with minor losses. The lack of directional cues led to the markets bucking positive global trends. The Sensex was down by 65.66 points, or 0.17%, to close at 37,668.42 while the Nifty was down by 21.8 points, or 0.20%, to close at 11,131.85.

Ahead of the monthly expiry, the markets initially rose on strong volumes, with the futures and options segment on NSE witnessing a turnover worth Rs 25.61 lakh crore, against the six-month average of Rs 15.52 lakh crore.

The cash market saw a turnover worth Rs 57,458.02 crore, against six-month average of `53,128 crore.

Broader markets too ended flat, with the Nifty Midcap 100 declining by 0.33% and the Nifty Smallcap 100 gaining 0.1%.

The markets had been tanking in the last few trading sessions because of the resurgence of novel coronavirus cases in Europe and fears of a second lockdown.

Kotak Institutional Equities said, “The recent resurgence in cases in Europe highlights the risk of subsequent waves upon relaxation of lockdowns. India’s hopes now rest on medical (vaccine) or natural (herd) immunity as the economic cost of lockdowns is enormous. Both are some time away.”

The Asian markets traded mostly flat on Wednesday with bourses in South Korea, Hong Kong and China closing 0.03% to 0.17% higher.

The markets in Germany, France and the UK were higher between 1.58% and 2.28%. The markets were emulating the gains that the US markets saw overnight where the Dow Jones, S&P 500 and Nasdaq closed higher by 0.5% to 1.71%.

Foreign portfolio investors on Tuesday sold stocks worth $272.7 million whereas domestic institutional investors bought stocks worth $115.6 million.