Mumbai, Sep 24 (NationPress) The Indian benchmark indices commenced the trading session slightly lower on Wednesday, influenced by weak global cues, with widespread selling observed across all sectors, with the exception of PSU banks.

At 9:21 AM, the Sensex dropped by 289 points, equating to 0.35 percent, settling at 81,813, while the Nifty fell by 87 points, also 0.35 percent, at 25,082.

Investor sentiment took a hit following remarks from US Fed Chair Jerome Powell regarding the risks of stagflation and the high levels of asset prices. Moreover, issues such as US visa restrictions, ongoing foreign capital outflows, and persistent valuation worries in domestic markets contributed to the pressure on stock exchanges.

The broader indices, Nifty Midcap 100, decreased by 0.45 percent, while the Nifty Smallcap 100 saw a decline of 0.20 percent.

Among the Nifty pack, notable gainers included Trent, SBI, Asian Paints, Maruti Suzuki, and ONGC, whereas the losers comprised Hero MotoCorp, Titan Company, Tech Mahindra, Tata Motors, and ICICI Bank.

On the sector front, Nifty Auto was the biggest loser, down by 0.71 percent. Other lagging sectors included Nifty IT (down 0.66 percent) and Nifty Consumer Durables (down 0.70 percent). All sector indices traded in the red, except for PSU Bank, which gained 0.37 percent.

Analysts expressed concerns about the global market, citing elevated asset prices. Chair Powell indicated that prices of assets like stocks, gold, silver, and bitcoin are currently inflated. He also reiterated the risks related to inflation and employment, suggesting that navigating the Federal Reserve's policy will be challenging in the near future.

In the Indian context, even though the Nifty is about 4 percent down from its September 2024 peak, valuations remain above long-term averages. However, these valuations could become justifiable with a boost in earnings growth, potentially in FY27, analysts mentioned.

Overnight, US markets closed in the red, with the Nasdaq dropping by 0.95 percent, the S&P 500 declining by 0.55 percent, and the Dow losing 0.19 percent.

Most Asian markets were trading positively in the morning session, with China's Shanghai index increasing by 0.45 percent and Shenzhen rising by 0.92 percent, while Japan's Nikkei fell by 0.43 percent. Hong Kong's Hang Seng Index gained 0.74 percent, while South Korea's Kospi lost 1.21 percent.

On Tuesday, Foreign Institutional Investors (FIIs) sold equities worth Rs 3,551 crore, while Domestic Institutional Investors (DIIs) were net buyers of equities worth Rs 2,671 crore.