On Wednesday, Sensex fell 0.54 percent while Nifty recorded low of 0.5 percent ahead of budget slated for 10 July. Meanwhile, the Indian rupee ended steady at 59.75 a dollar versus its previous closing at 59.78 a dollar on Tuesday.
BSE index closed with loss of 137.30 points at 25,444.81 points and NSE index also depreciated by 38.20 points at 7585 points on Wednesday.
"Markets may remain range-bound for the near term as valuations are looking expensive for the short term. Budget will be positive but would be more of a roadmap for the next few Years," Reuters quoted Aneesh Srivastava, chief investment officer at IDBI Federal life Insurance.
BSE Sensex and NSE Nifty had opened higher on Wednesday by 0.12 percent and 0.19 percent respectively. Sensex opened up at 25615.28 points with surge of 33.17 points and Nifty index was recorded at 7637.95 points with an increase of 14.75 points.
On Tuesday, Indian stock indices recorded their biggest single day fall in over 10 months with loss of around 2 percent. Sensex closed at 25582.11 points, with a loss of 517.97 points, and Nifty fell by 163.95 to settle at 7623.20 points. Other 10 Stock Indices also depreciated.
The Indian rupee on Wednesday opened weaker by 9 paise at 59.87 per dollar versus its previous closing of 59.78 a dollar on Tuesday.
"All economic numbers will be watched keenly by the markets. Foreign exchange players will be more keen on the announcements which have the potential to attract foreign fund inflows," Reuters quoted Hari Chandramgethn, head of foreign exchange trading at South Indian Bank.
"The pair can test 59.25 levels in case of positive announcements, while on the topside 60.40 should hold," he added.
According to Reuters, National Stock Exchange of India traded below its 20-day moving average for second consecutive day.
At 11:40 am, BSE Sensex plunged 0.17 percent at 25537.90 points and NSE Sensex fell 0.16 points by recording at 7611 points. The decline in Indian market during trading hours was attributed to weak Asian stocks that fell to a one-week low on Wednesday after China's consumer inflation cooled slightly more than expected in June, that reflected unconsolidated economic situation in China.
At 12:10 pm, BSE Sensex fell by 44.11 points and 0.17 percent. Among 30 companies listed in Sensex, stock prices of 18 companies fell during trading hours. On other hand, among 50 companies listed in Nifty, over fifty percent stock prices depreciated. Hence, Nifty recorded 7613.80 points with loss of 9.40 points and 0.12 percent on Wednesday.
Besides, NSE index traded on Singapore Exchange fell 0.1 percent, whereas the MSCI-Asia Pacific Exchange excluding Japan declined 0.8 percent. Moreover, foreign investors bought more shares worth ₹4.22 billion on Tuesday versus ₹1.98 billion on Monday.
BJP government's promising railway budget on Tuesday disappointed markets, as investors were not captivated by the rail proposal due to lack of details in foreign investments and among others.
