- Rising crude oil prices and geopolitical tensions added pressure.
India’s benchmark indices ended nearly flat as the Sensex rose 49 points to settle at 74,608 while the Nifty also increased 33 points to end the day at 23,412 as of 3:30 PM.
In the 30-share BSE Sensex, the top gainers included stocks like Asian Paints, Tata Steel, Adani Ports, Bharat Electronics Limited and Bharti Airtel. Meanwhile, the laggards included stocks such as Infosys, Mahindra & Mahindra, Sun Pharmaceuticals, Tech Mahindra and Tata Consultancy Services.
In the broader markets, the Nifty Midcap 100 rose 0.77 per cent as volatility remained low. Sectorally, Nifty Metal jumped 3.18 per cent while Nifty IT declined 1.13 per cent.
Previously, during the early morning session, the BSE Sensex opened around 74,539 and climbed about 75 points, while the NSE Nifty50 started near 23,374 and gained over 17 points, as of early trade.
Indian equity markets gave up early gains to trade in negative territory on Wednesday, as rising crude oil prices, persistent geopolitical uncertainty, and continued selling by foreign investors kept sentiment under pressure.
FIIs Continue To Sell
Foreign Institutional Investors offloaded equities worth Rs 1,959.39 crore on Tuesday, according to exchange data, adding to the pressure on domestic markets.
Crude Stays Elevated
Brent crude, the global oil benchmark, was trading at around USD 106.6 per barrel, sustaining pressure on import-dependent economies like India. Markets are growing increasingly concerned that elevated energy prices, combined with geopolitical uncertainty, could further stoke inflationary pressures worldwide, said Hariprasad K, Research Analyst and Founder, Livelong Wealth.
Iran-US Standoff Keeps Global Markets On Edge
The standoff between the United States and Iran continued to cloud the outlook for global energy supplies. Iran’s latest remarks that the US must either accept its peace proposal or face failure have further dimmed hopes of a near-term diplomatic resolution. The prolonged US-Iran standoff remains a major overhang for global financial markets, keeping uncertainty elevated around the Strait of Hormuz and broader global energy supplies, said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
Also Read: Fuel Prices May Rise If Iran War Continues, Warns RBI Governor
Inflation Data Adds To Concerns
India’s retail inflation edged up to 3.48 per cent in April, driven mainly by higher prices of gold and silver jewellery as well as some kitchen items, according to government data released on Tuesday. In the United States, the inflation print for April also came in higher than expected, weighing on technology stocks and pulling the S&P 500 lower, Hariprasad K noted.
Asian Markets Diverge From India
While Indian indices struggled, most Asian peers held firm. South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all quoted in positive territory. US markets, however, ended mostly lower on Tuesday.
On Tuesday, the Indian benchmark indices had crashed as the Sensex declined over 1,200 points to settle over 74,700, and the Nifty tumbled more than 380 points to close at 23,429.
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