Sensex back in the red, ends 710 points lower

Mumbai: Indian shares fell on Wednesday after posting a near 2% jump in the previous session, as investors fretted over rising inflation and aggressive policy tightening by central banks. India's 10-year benchmark yield was down marginally to 7.41%, from its previous close of 7.48%. Asian stocks fell in volatile trade, failing to extend an overnight Wall Street rally, while the Japanese yen hit a fresh 24-year low against the dollar. Metal stocks declined in India, after a short rebound on Tuesday, with the Nifty Metal index trading 3.2% lower.

Equity markets reversed its initial week's gains as investors worry over slower economic growth amidst rising inflation and rate hikes. Overall market trend remains weak hence we suggest to continue with 'Sell on rise' strategy for traders. The broader market too has been under pressure in the last few days on account of heavy FII selling. Concerns over premium valuation as well as higher impact of inflation on their profitability led to sharper fall in broader markets compared to large caps.

Also read: Global markets plunge again as interest rate hikes fuel recession fears

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