Sensex Slips Below 66,000, Nifty Under 19,800: Midday Market Update

India's benchmark stock indices declined through midday trade on Wednesday after swinging between gains and losses, dragged by HDFC Bank Ltd. and ICICI Bank Ltd.

The Nifty fell below 19,800, while the Sensex slipped below the 66,000 mark as banks and non-banking financial companies declined. Whereas the auto and pharma sectors advanced

"In spite of the tragic geopolitical developments, globally, markets are resilient. Back home in India, the resilience of the Indian economy and improving macros are supporting the market. The recent experience shows that geopolitical developments will not impact the markets for long. For instance, the market is ignoring the ongoing Ukraine war. Even while remaining vigilant, market weakness can be used to buy high-quality stocks, particularly in sectors like financials, automobiles and capital goods," said VK Vijayakumar, chief investment strategist at Geojit Financial Services Ltd.

As of 12:03 p.m., the S&P BSE Sensex fell 442 points, or 0.64%, to 65,986.37, while the NSE Nifty 50 declined 117 points, or 0.59%, to 19,694.25.

Stocks in Asia slipped as uncertainties lingered in the Middle East and markets digested the possibility of further rate hikes by the Federal Reserve. Better-than-expected China data failed to dispel concerns over the country’s economic outlook.

U.S. stock futures edged lower, and European contracts fell. Australian, South Korean and Japanese stocks reversed their initial losses, while Chinese and Hong Kong markets were trading lower.

Cipla Ltd., Dr. Reddy's Laboratories Ltd., Infosys Ltd., Sun Pharmaceutical Industries Ltd. and Tata Motors Ltd. were positively contributing to changes in the Nifty.

While, Axis Bank Ltd., Bajaj Finance Ltd., HDFC Bank Ltd., ICICI Bank Ltd. and Kotak Mahindra Bank Ltd. were weighing on the index.

The broader market indices mirrored larger peers; the S&P BSE MidCap was down 0.57%, whereas S&P BSE SmallCap was also 0.23% lower.

Eighteen out of the 20 sectors compiled by BSE declined, while two sectors advanced. S&P BSE Bankex and S&P BSE Financial Services fell the most.

The market breadth was skewed in the favour of sellers. About 1,434 stocks rose, 2,086 declined, and 173 remained unchanged on the BSE.