A morning walk down Dalal Street | Investors could react to RIL Q2 show

It was a disappointing Wednesday for the Indian equity market. The Sensex reversed gains and fell nearly 900 points from its intraday high of 35,605. It finally closed 382 points down at 34,779 while the Nifty50 saw a fall of 131 points to close at 10,453.

Liquidity concerns hit NBFCs stocks again as financials led the fall in the index. Also, the rise in oil price and volatility in rupee influenced investors to book profits.

Minutes of the Federal Reserve’s latest meeting showed broad agreement among Board members on the need to raise borrowing costs further. The US dollar index and Treasury yields rose to its highest levels in a week on Wednesday, said a Reuters report.

On the technical front, if the bulls fail to push the index above its immediate hurdle at 10,550-10,600 zones then profit booking may take it towards next support of 10,350 zones.

India VIX moved up by 3.51 percent at 17.98. The spurt in volatility after the dips of the last four sessions suggests that upside could be restricted again in the market.