Indian equity benchmark indices ended lower on Wednesday, extending their losing streak to the third consecutive session, with the Sensex falling over 370 points and the Nifty settling below the psychological 24,000-mark amid elevated geopolitical tensions in West Asia and rising crude oil prices.
The Sensex ended at 76,570.35, down 373.93 points, or 0.49 per cent, while the Nifty settled at 23,914.45, lower by 141.35 points, or 0.59 per cent.
Sectorally, the Nifty Auto index was the worst performer, declining over 1 per cent, followed by the IT sector. All broad-market indices also ended in negative territory.
On the BSE, Adani Ports, Power Grid, NTPC, Titan, ITC, Reliance, Trent, Bajaj Finance and LT were among the top gainers. Infosys, M&M, Tech Mahindra, SBI, ICICI Bank, Axis Bank, Eternal, IndiGo and Tata Steel were among the major laggards.
On the NSE, Coal India, NTPC, Adani Ports, Power Grid, TMPV, Reliance, ITC, LT, ONGC and Titan were among the top gainers, while Eicher Motors, Infosys, Sun Pharma, Eternal, Kotak Bank, Grasim, Axis Bank, Trent, Cipla, Hindalco, IndiGo, Hindustan Unilever, SBI Life, BEL and HCL Tech were among the top drags.
In the commodity market, Brent crude was trading at around USD 94.87 per barrel, while WTI crude was trading at around USD 90.37 per barrel at the time of reporting.
Market analyst Vipin Dixena said Wednesday’s movement was more significant than a routine profit-booking session, as rising crude prices are emerging as a macroeconomic risk for India.
“Higher oil prices can put pressure on the rupee, inflation and bond yields, while simultaneously reducing the possibility of further monetary easing. The fact that the selling extended across sectors shows that today’s risk-off move was not restricted to a particular pocket of the market,” Dixena said.
“From a technical perspective, Nifty has slipped below the 24,000 mark, which weakens the near-term structure. The 23,800-23,750 zone becomes an important support area from here. A sustained break below this zone could open the door for further downside, while any recovery towards 24,000-24,100 would now face immediate supply,” he added.
Kunal Saraogi, trader, investor and market commentator, said the case for investing in India was becoming more interesting as foreign institutional investors (FIIs) appeared to be turning more supportive after sustained selling in recent years.
“I think the case for investing in India is now becoming more interesting. FIIs were continuously selling relentlessly. They sold all through the last couple of years. But I think that’s beginning to change. We have seen positive numbers for FII. We’ve also seen, due to MSA rebalancing, a lot of funds are coming into India,” Saraogi said.
“So I think going forward, FIIs will continue to be bullish on the markets,” he added. (ANI)
