Indian markets close lower as oil prices, inflation data weigh heavily

Indian equity markets ended lower on Wednesday, with Sensex falling 188 points and Nifty down 36 points. The decline was driven by elevated crude oil prices and investor caution ahead of key inflation data from India and the US.

The domestic equity markets closed lower on Wednesday, with the benchmark Sensex falling 187.90 points, or 0.24 per cent, to 77,966.35, while the Nifty 50 declined 35.75 points, or 0.15 per cent, to 24,435.95, as elevated crude oil prices and caution ahead of key inflation data weighed on investor sentiment.

Market Cautious Ahead of Inflation Data

Vinod Nair, Head of Research, Geojit Investments, said markets remained cautious ahead of inflation readings in India and the US, while crude oil prices remained a key concern. "Markets remained on edge ahead of key inflation readings in India and the U.S., with policymakers on both sides underscoring a data-driven approach amid heightened global uncertainty. Against this backdrop, elevated crude oil prices, which retested the USD 90/barrel level, weighed on investor confidence and triggered broad-based risk-off selling despite supportive cues from Asian peers," Nair said.

Sectoral Movers and Stock-Specific Action

Brent crude oil prices remained elevated and were trading at around USD 89 per barrel at the time of filing this report. The selling pressure was broad-based across sectors. On the NSE, most sectoral indices closed in the red, with Nifty FMCG falling more than 1 per cent, Nifty IT declining 1.92 per cent, Nifty Pharma losing 0.42 per cent and Nifty Auto falling 0.37 per cent.

However, Nifty Media, Nifty Metal and Nifty PSU Bank were among the sectoral indices that closed higher. Nair said PSU banks continued to perform well despite the broader weakness in the market.

Among Nifty 50 stocks, Hindalco, Bharti Airtel, SBI, Jio Finance and Ultratech Cement were among the top gainers. TCS, Max Healthcare and Apollo Hospital were among the top losers.

Tata Group Stocks Under Pressure

Shares of Tata Group companies came under pressure during the session and fell by as much as 4 per cent after Tata Sons Chairman N Chandrasekaran announced that he would not seek reappointment when his current term ends on February 20, 2027.

The development came ahead of the conglomerate's annual general meeting scheduled for August 18. TCS, the group's most valuable listed company, led the decline among Tata stocks. Its shares fell around 3.71 per cent to Rs 2,349 per share on the NSE by the close.

Analyst Views Profit Booking as Healthy

Riyank Arora, Associate Vice President - HNI & Derivatives, Hedged.in, said the decline should be viewed as profit booking following the recent market gains. "Profit booking after a strong run is healthy, not alarming, as long as the market holds above its key supports. The broader uptrend remains intact. We'd continue favouring a buy-on-dips stance in fundamentally sound stocks, with risk management front and centre," Arora said.

Currency and Asian Market Roundup

The Indian rupee appreciated 10 paise against the US dollar and was trading at Rs 95.33 per dollar.

In the other Asian markets, Japan's Nikkei 225 gained 0.84 per cent to close at 67,539, while Taiwan's weighted index rose 0.87 per cent to 45,518. South Korea's KOSPI gained 3.55 per cent to close at 6,579. On the other hand, Singapore's Straits Times declined 0.58 per cent to 5,720, while Hong Kong's Hang Seng Index fell 0.98 per cent to 25,405. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)