Markets decline in early trade after two days of rally

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India's equity benchmark indices declined in early trade on Wednesday following two days of gains, driven by selling pressure in Tata Motors and weak trends in Asian markets. The 30-share BSE Sensex dropped by 111.85 points to 81,809.44, while the NSE Nifty slipped 39.2 points to 25,001.90.

Among the major laggards were Tata Motors, ICICI Bank, Titan, HDFC Bank, JSW Steel, Tech Mahindra, UltraTech Cement, and Axis Bank. On the other hand, Asian Paints, Bharti Airtel, ITC, and Hindustan Unilever were among the gainers, reported PTI.

According to the news agency report, across Asia, markets in Seoul, Tokyo, Shanghai, and Hong Kong were trading lower. In contrast, US markets ended with gains on Tuesday.

Foreign Institutional Investors (FIIs) continued to invest, buying equities worth Rs 2,208.23 crore on Tuesday, according to exchange data. Meanwhile, the global oil benchmark, Brent crude, rose by 0.59 per cent to USD 69.60 per barrel, the report added.

On Tuesday, the BSE Sensex gained 361.75 points to settle at 81,921.29, while the NSE Nifty surged 104.70 points to 25,041.10.

On Wednesday, the rupee moved in a narrow range, rising 2 paise to 83.96 against the US dollar on lower crude oil prices and matching its Asian rivals. Forex traders said foreign institutional inflows, combined with major corrections in asset classes like as the dollar index and crude oil prices, supported the rupee, while the Reserve Bank's strong intervention held it in a tight range.

On the interbank foreign exchange market, the local currency fluctuated in a narrow range. It opened at 83.97 per US dollar and was at 83.96 in early trade, up 2 paise from the previous close.

On Tuesday, the rupee fell 3 paise to settle at 83.98 against the US dollar. Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.21 per cent to 101.42 points.

Brent crude, the worldwide benchmark, was up 0.48 per cent to USD 69.52 a barrel in futures trade. Forex traders believe that crude oil at USD 69 per barrel will help the home currency since India, the world's third-largest oil importer, will profit from lower oil prices.

With PTI inputs