Sensex Slips Below 71,000, Nifty Nears 21,600 As Fed Rate Cut Hopes Wane: Midday Market Update

India's benchmark stock indices traded lower through midday on Wednesday as higher-than-expected US inflation data lowered expectations of a rate cut anytime soon.

As of 11:57 a.m., the NSE Nifty 50 fell 126.55 points, or 0.58%, to 21,616.70, and the S&P BSE Sensex declined 476.46 points, or 0.67%, to 71,078.73.

The Sensex hit an intraday low of 70,809.84, and the Nifty fell as low as 21,530.20.

"Today, India's primary indices, the BSE Sensex and Nifty 50, initiated trading with a decline exceeding 0.5%, influenced by global patterns triggered by a U.S. inflation report surpassing expectations," said Shrey Jain, founder and chief executive officer of SAS Online.

"As investors navigate Dalal Street, the stock market sentiment remains cautious due to weaker-than-expected Wall Street cues, primarily driven by U.S. inflation readings exceeding economists' forecasts. While uncertainties loom, opportunities emerge with the addition of five new stocks to the MSCI Global Standard Index," said Prashanth Tapse, senior vice president, research, Mehta Equities Ltd.

Shares Bajaj Auto Ltd., Bharat Petroleum Corp., Coal India Ltd., ICICI Bank Ltd. and ITC Ltd. were positively contributing to changes in the Nifty.

Whereas, HDFC Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., Sun Pharmaceutical Industries Ltd. and Tata Consultancy Services Ltd. weighed on the index.

On the NSE, four of the 12 sectors declined, two remained largely flat, and six rose.

Nifty IT declined the most, while Nifty media rose the most.

Broader markets were trading mixed, with the S&P BSE Midcap fell 0.11%, while the S&P BSE Smallcap rose 0.56% through midday on Wednesday.

Six of the 20 sectors compiled by the BSE declined, while 12 advanced. S&P BSE TECK fell the most, while the S&P BSE Oil & Gas rose the most.

Market breadth was skewed in the favour of buyers. Around 1,996 stocks rose, while 1,693 stocks declined, and 103 remained unchanged on BSE.