Mumbai, May 28 (IANS) 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.

“Technically, the Nifty index formed a red candle on the daily chart, indicating weakness. However, it continues to trade above its 21-Day Exponential Moving Average (21-DEMA), which is positioned near 24,570. As long as the index holds above this level, the probability of a pullback move cannot be ruled out,” said Hrishikesh Yedve from Asit C. Mehta Investment Interrmediates Ltd (a Pantomath Group company).

On the upside, the index is likely to face strong resistance near the 25,000–25,100 zone, he noted.

Rupee traded flat around 85.40 against the US dollar, as the dollar index also remained steady near the 99.45 mark.

With major economic data lined up this week — including the US Fed meeting minutes, Q4 GDP, and Core PCE Price Index — the rupee’s trajectory will largely be guided by foreign fund activity in the secondary markets, said Jateen Trivedi from LKP Securities.

Gold prices traded positive, taking strong support around the $3,280–$3,300 zone on Comex, while MCX gold found buying interest with gains of Rs 600 taking support of Rs 95,000.

–IANS

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