The Indian Stock Markets on Wednesday fell significantly from day’s high to trade in the red. Profit booking emerged as one of the key reasons for the key decline in the markets performance leading to Sensex fall 1,400 points from day’s high while Nifty was trading below 22,750-mark.
The sharp retreat from the day’s high reflected a loss of momentum after early gains, with selling pressure emerging at higher levels. Investors remained cautious amid uncertainty over global market trends, crude oil prices and foreign fund flows.
Brent crude oil futures keep hovering above $110 per barrel leading to the markets performance. US and Iran continued their strikes against each other in the Strait of Hormuz and this is likely to keep market participants on edge.
At close, Sensex was down by 143.21 points or 0.19% at 73,709.69 while Nifty was at 22,811.35, down by 77.60 points or 0.34%.
What led to Markets fall?
Profit booking:
Profit booking emerged at higher levels as investors kept a close watch on corporate earnings and the outlook for economic growth.
Crude Oil Prices:
The brent crude oil keep on the boil pushing the markets in red, affecting the global markets situation.
Brent crude oil futures hovered above $110 per barrel as the US and Iran continued their strikes against each other in the Strait of Hormuz and this is likely to keep market participants on edge.
Gold and silver prices:
Gold and silver are lower with MCX gold at Rs 1,45,917 per 10 grams, down Rs 602, and MCX silver at Rs 2,09,000 per kg, down Rs 2,485 or 1.18%, while spot gold slips to around $4,110 an ounce for a fourth straight session of losses.
Vinod Nair, Head of Research, Geojit Investments Limited said, “Indian equities gave up strong early gains as elevated crude prices and continued FII selling overshadowed optimism surrounding India-US trade negotiations. Profit-booking intensified across autos, financials, metals and realty, reflecting concerns over inflation, and margin pressures, while IT showed relative resilience amid improving earnings visibility and renewed investor appetite for the sector.”
“Resilient Q2 earnings and robust domestic institutional flows remain important market supports, but weak breadth and persistent foreign selling point to continued caution. Near-term direction will depend on the breadth of earnings delivery, progress on trade negotiations and foreign flows, with durable moderation in crude, global yields and currency volatility crucial for market stability.”