The Indian market fell sharply on Wednesday, as caution prevailed ahead of RBI's mid-quarter policy review meet tomorrow, where the central bank is expected to raise its repo rate by at least 25 basis points to tame stubborn inflation that soared to 9.06 percent in May.
Also, investors moved to the sidelines awaiting corporate advance tax payments data for cues on earnings outlook.
The benchmark 30-share Sensex ended down 176 points or 0.96 percent near the day's low at 18,132, while the broader Nifty index closed at 5,447, down 53 points or 0.96 percent from its previous close.
Second-line stocks posted relatively modest losses and the market breadth remained fairly negative, with declining shares outpacing gaining ones by 1640 to 1201 shares on the BSE.
Sector-wise, rate-sensitive banking and realty shares and stocks of export-oriented IT companies bore the brunt of the selling while FMCG and healthcare stocks witnessed stock-specific buying.
Realtor DLF and software services provider Wipro led the decliners, falling about 2.8 percent each, SBI lost 2.3 percent and ICICI Bank shed 2.1 percent. Jaiprakash Associates, NTPC, Hindalco and Reliance Communication ended down around 2 percent each.
Maruti Suzuki fell a percent as a strike at its Manesar facility continued for the 10th day. Reliance Industries declined 1.4 percent, extending declines for the third day, after the Comptroller Auditor General said in a report that the company has inflated production costs in its KG-D6 gas fields.
HDFC ended down 0.2 percent after Citigroup said it has earned a pre-tax profit of $160 million by selling a 1.5 percent stake in the mortgage lender.
DB Realty eased 0.7 percent after the Central Bureau of Investigation initiated the process of attaching the property or equity shares worth Rs.200 crore of the company that was allegedly used as a bribe in the 2G scam. Andhra Bank slumped almost 5 percent on turning ex-dividend.
Among those that gained, Reliance Infrastructure rose 1.5 percent, Tata Motors gained a percent, Hindustan Unilever added half a percent, Hero Honda Motors edged up 0.2 percent and ITC closed up 0.1 percent. Lupin gained half a percent after its Australian arm acquired worldwide rights for the Goanna brand of premium therapeutic oils, rubs and ointments.
Elsewhere, the other Asian markets closed on a mixed note, as looming interest rate hikes in China and Australia offset to a certain extent investor enthusiasm over positive data on U.S. retail sales.
While a rally on Wall Street overnight after a six-week losing streak gave investors some relief, a series of U.S. economic data due out later in the day and the inability of European economic ministers to decide on how private holders of Greek debt should share the costs of a new bailout kept the underlying mood cautious.
European markets were broadly lower in early trading amid concerns that disagreements between European officials may delay a second bailout plan for Greece. Also, banking stocks came under selling pressure after Moody's said it has placed the financial strength ratings and long-term debt and deposit ratings of three French banks on review for a possible downgrade due to their exposure to Greek debt.
The U.S. index futures point to losses at the open on Wall Street Wednesday following strong gains overnight on data showing better-than-forecast retail sales.
Oil prices hovered around $98 a barrel, as the dollar strengthened and caution prevailed ahead of an inventory report from the U.S. Department of Energy Information Administration later in the day. The dollar snapped a two-day losing streak against the euro and was unchanged against the yen.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.