Mumbai, May 28
The Indian stock market closed in the red on Wednesday for the second consecutive day amid prevailing premium valuations and mixed global cues.
The Sensex closed 239.31 points or 0.29 per cent down at 81,312.32 and the Nifty was down 73.75 points or 0.30 per cent to close at 24,752.45.
The decline was led by FMCG stocks. The Nifty FMCG index closed down nearly 1.50 percent. Apart from this, the Nifty Auto, Pharma, Metal, Realty, Infra, Commodity and Healthcare index were in the red.
Mixed trading was seen in midcap and smallcap. The Nifty Midcap 100 index was down marginally by 13 points at 57,141 and the Nifty Smallcap 100 index was up 58 points or 33 percent at 17,784.
According to analysts, the domestic indices remained rangebound with a negative bias, primarily due to the lack of support from FIIs and prevailing premium valuations.
On the domestic front, key economic indicators such as an improved monsoon forecast, a benign inflation outlook, and expectations of a stronger Q4 GDP may help cushion downside risks, said Vinod Nair, Head of Research, Geojit Investments Limited.
However, earnings visibility needs to improve in tandem with the macros, which is vital for stability in the direction, he added.
The volatility index, India VIX, cooled off by 2.79 per cent to 18.02, indicating a drop in market volatility.