Mumbai: Benchmark equity indices—Sensex and Nifty—closed lower for the second consecutive day on Wednesday. Investors remained cautious due to high crude oil prices and uncertainty regarding a potential agreement to reopen the Strait of Hormuz.
The Sensex fell 187.90 points, or 0.24 percent, to close at 77,966.35, while the Nifty declined 35.75 points, or 0.15 percent, to end at 24,435.95.
Commenting on the technical outlook for the Nifty, experts noted that the index continued its downward trend after slipping below the 24,400 mark, moving towards the 24,250 level.
An analyst stated, “At lower levels, it found support around the 200-hour SMA before staging a recovery. On the daily timeframe, the index managed to close above the 20-day EMA.”
According to the expert, “A sustained drop below 24,400 on Thursday could push the index towards 24,180 again. On the upside, 24,500 could act as a crucial resistance level, and sustaining above this mark might lead to an improvement in the trend.”
Crude oil prices remained elevated due to concerns over global energy supplies, dampening investor sentiment and fostering a cautious atmosphere in the equity markets.
Rising oil prices are generally viewed negatively for India, as the country is a major importer of crude oil. This can increase inflationary pressure and widen the trade deficit.
Among Nifty constituents, Tata Consultancy Services (TCS), Max Healthcare Institute, and Apollo Hospitals Enterprise were among the top losers, dragging the benchmark index lower. The broader market performance was mixed. The Nifty Midcap index outperformed the benchmark index, recording a gain of 0.28 percent, while the Nifty Smallcap index fell by 0.18 percent.
Sectoral trends also varied. The Nifty IT index was the day’s worst performer, dropping 1.54 percent amid selling pressure in technology stocks. In contrast, the Nifty PSU Bank index rose 2 percent, emerging as the top sectoral performer and helping to mitigate losses in the broader market.
A market expert remarked, “Investors are keeping a close watch on the US inflation report. The outcome is expected to influence expectations regarding the Federal Reserve’s policy direction and shape sentiment across global financial markets.”
