Indian equity markets closed lower amid global concerns like US tariffs and geopolitical tensions. Despite the fall, markets recovered from the day's lows, primarily driven by a sharp rally in banking stocks, while the IT sector lagged.
Indian equity markets ended lower on Wednesday as investor sentiment remained under pressure due to fresh tariff concerns from the United States, continued tensions in West Asia and reports of fresh attacks in Ukraine. The NSE Nifty 50 index closed at 23,405.60, down 77.95 points or 0.33 per cent, while the BSE Sensex settled at 74,346.17, declining 303.67 points or 0.41 per cent.
Market Recovery and Expert Analysis
Despite opening with weakness, markets witnessed a recovery from the day's lows, led by gains in banking stocks. Vinod Nair, Head of Research at Geojit Investments Limited, said, "Domestic markets witnessed a swift recovery from initial losses despite escalating Iran-US tensions. The rebound was primarily driven by a sharp recovery in banking stocks, while IT stocks emerged as the biggest laggards due to profit booking and persistent global uncertainties."
He added that expectations of supportive policy measures aimed at boosting foreign investments helped market sentiment during the session. According to Nair, PSU banks outperformed private sector peers, supported by relatively stronger credit growth trends.
However, he noted that investors remain cautious ahead of the upcoming Reserve Bank of India (RBI) monetary policy decision and the release of GDP data, which are expected to provide further clarity on economic growth and inflation risks arising from geopolitical developments. "Meanwhile, the developments in US-India trade negotiations and broader geopolitical dynamics could influence near-term market direction," Nair said.
Sectoral Performance
Among sectoral indices on the NSE, a mixed trend was visible. Nifty IT was the worst-performing sector, falling more than 5 per cent amid profit booking and global uncertainty. Nifty FMCG declined by more than 1 per cent, while Nifty Media slipped 0.59 per cent. On the positive side, Nifty PSU Bank surged 1.70 per cent and Nifty Private Bank gained 0.70 per cent. Nifty Pharma also ended higher, rising 0.33 per cent.
Currency and Commodity Markets
In the currency market, the Indian rupee was trading at Rs 95.70 against the US dollar at the time of filing this report.
Meanwhile, Brent crude oil prices remained elevated amid geopolitical concerns. Brent crude was trading at USD 98.87 per barrel, up more than 3 per cent.
In the precious metals market, gold prices declined by 1 per cent to Rs 1,53,996 per 10 grams for 24-karat gold. Silver prices also moved lower to Rs 2,64,157 per kilogram.
Asian Market Trends
Asian markets presented a mixed picture on Wednesday. Japan's Nikkei 225 index gained more than 2 per cent to close at 68,718. Singapore's Straits Times rose 0.80 per cent to 5,138, while Taiwan's Weighted Index advanced 1.94 per cent to close at 46,459.16. However, Hong Kong's Hang Seng index declined 1.61 per cent to close at 25,626. South Korean markets remained closed on Wednesday.
Investor Watchlist
The investors now will be watching the RBI's policy outcome, GDP data and further developments in global trade and geopolitical tensions for cues on the market's near-term direction. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)