Indian stock markets ended in the red on Wednesday as a fresh rise in crude oil prices, heightened Middle East tensions and selling pressure in Tata Group shares dampened investor sentiment.
The BSE Sensex declined 187.90 points, or 0.24%, to close at 77,966.35, while the NSE Nifty 50 slipped 35.75 points, or 0.15%, to finish at 24,435.95.
The rupee also weakened against the US dollar, falling 0.14% to 95.4350. The decline came amid concerns that costlier crude could widen India’s import bill and add to inflationary pressures.
Tata stocks remain under pressure
Selling intensified in several heavyweight counters, with TCS emerging as the biggest drag among major stocks. The IT major fell 3.71%, while Mahindra & Mahindra declined 1.67% and Tata Steel lost 1.57%.
Tata Group stocks remained weak following the chairman’s exit, weighing particularly on large-cap shares.
Some major stocks bucked the trend. State Bank of India rose 1.31% and Bharti Airtel gained 1.16%. UltraTech Cement advanced 0.56%, while Reliance Industries and Bharat Electronics added 0.45% and 0.50%, respectively.
Vinod Nair, Head of Research at Geojit Investments, said investors were maintaining a cautious stance ahead of key inflation readings from India and the US amid continued global uncertainty.
Oil prices surge amid geopolitical uncertainty
Crude oil prices climbed more than 2% during the session. Brent crude rose 2.22% to $89.67 per barrel, while WTI gained 2.36% to $84.07.
Uncertainty surrounding the Strait of Hormuz and the prospects of a US-Iran agreement continued to support oil prices. Any prolonged disruption around the key shipping route could further tighten global energy supplies.
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For India, rising crude prices pose a significant economic risk because of the country’s heavy dependence on oil imports. Higher energy costs can increase the import bill, fuel inflation and raise operating expenses for companies.
Nair said the sharp recovery in crude prices had brought inflation risks back into focus, limiting investor enthusiasm despite a supportive earnings environment.
PSU banks buck market trend
Public sector banks continued to outperform the broader market, helped by strong asset quality, attractive valuations and expectations of sustained credit growth.
Metal stocks also remained relatively resilient on expectations of tighter supplies.
Despite the pressure on equities, strong foreign inflows and healthy corporate earnings provided some support to the market and helped contain the downside.
IT and FMCG sectors decline
Sectoral performance remained mixed. Nifty Infrastructure rose 0.27%, Nifty Energy gained 0.18% and Nifty Pharma edged up 0.05%.
Meanwhile, Nifty IT dropped 1.54%, Nifty FMCG declined 0.73%, Nifty Consumer Durables fell 0.45% and Nifty Auto slipped 0.32%.
The Nifty Smallcap 100 index ended 0.18% lower, while the India VIX declined 1.58%.
Investors are now likely to focus on upcoming inflation data from India and the US, along with crude prices and developments around the Strait of Hormuz, for clues on the market’s near-term direction.
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