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Bears back in control after minor recovery yesterday, metal stocks sink again
Photo Credit: Reuters

Markets closed more than 1% lower on Wednesday, with bond yields at their weakest in over three weeks, as global stocks and oil prices declined amid mounting recession fears.

The Nifty closed 1.44% lower at 15,413.3 while Sensex dropped 1.35% to 52,51,822.53. Both indices had clocked their best session in three weeks on Tuesday.

India's benchmark 10-year bond yield fell 10 basis points on the day to 7.38%, its lowest level since May 30 before edging slightly higher to 7.40%.

India's partially convertible rupee was trading weaker to the dollar, while traders closely monitor the minutes of the monetary policy committee's June policy for near-term direction.

Metal stocks declined after their short rebound on Tuesday, as a stronger dollar and weak sentiment sent London copper prices to their lowest level since March 2021.

Nifty Metal tumbled 4.8%, with Hindustan Copper falling 7.3% while Nifty Energy lost 2.3%. Nifty Media dropped 3.5%.

Among gainers, Jain Irrigation Systems closed more than 10% higher after the company said on Tuesday it would sell a 78% stake in its international irrigation business to Temasek-owned micro-irrigation company Rivulis.

Analysts at BofA Global Research on Wednesday cut their year-end target for the Nifty to 14,500 from 16,000 and added they remain cautious with headwinds in the near term.

World stocks fell as the Japanese yen hit a fresh 24-year low against the dollar, while Brent crude futures were down 4.1% at $110 a barrel amid a push by US President Joe Biden to reduce taxes on fuel to cut costs for drivers.

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