Indian Stock Markets on Wednesday ended the day in losses with both the indices traded in red after falling from day’s high due. Markets reacted due to multiple reasons including profit booking and foreign investors selling as well as the rising crude oil prices.
Oil prices rose to about $107 a barrel as traders weighed supply risks from fighting between Yemen’s Iran-allied Houthis and Saudi Arabia.
At close, Sensex was down by 251.89 points or 0.34% at 72,781.89 while Nifty was at 22,622.70, down by 99.25 points or 0.44%.
Indian rupee ended 13 paise higher at 95.15 per dollar against the previous close of 95.28.
Profit booking also remained one of the key reasons behind the declined in the markets. Profit booking was seen after markets rose for 1.6% in the previous session.
FIIs continue to extend their selling streak to 13 consecutive sessions. Foreign investors recorded net sales of approximately Rs 1,305 crore, though the pace of outflows moderated.
Vinod Nair, Head of Research, Geojit Investments Limited said, “Indian equities witnessed a volatile session as profit booking emerged after recent gains, with investors turning cautious ahead of key U.S. inflation data. Sentiment found some support from easing intraday crude oil prices, rupee appreciation following the RBI’s forex measures, and expectations of a potential review of LTCG tax and STT.”
“However, a hotter-than-expected domestic WPI print pushed bond yields higher, reviving concerns over a tighter monetary policy trajectory and weighing on automobiles, private banks and metals. Meanwhile, encouraging business updates from IT, FMCG and PSU banks reinforced investors’ preference for fundamentally resilient companies with stronger earnings visibility amid a challenging macro backdrop.”
Ajit Mishra, SVP – research, Religare Broking said, “Markets surrendered part of the previous session’s sharp gains on Wednesday as profit booking resurfaced amid persistent macroeconomic concerns. The benchmark indices opened on a cautious note and remained volatile throughout the session, with investors reluctant to extend positions following Tuesday’s strong rebound. Consequently, the Nifty declined 0.44% to close at 22,622.70, signalling a pause in the ongoing recovery.”