MUMBAI: The equity markets ended lower on Wednesday, with the Nifty 50 declining 0.52 per cent and the Sensex falling 0.24 per cent, as weakness in IT, auto, FMCG and consumer durables stocks offset gains in banking and metal shares.
The Nifty 50 index closed at 24,207.75, down 126.80 points or 0.52 per cent, while the BSE Sensex closed at 77,472.94, declining 183.15 points or 0.24 per cent.
Vinod Nair, Head of Research, Geojit Investments Limited, said the domestic market gave up its early gains as sectoral divergence weighed on the benchmarks.
“Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realisation prospects. However, these gains were largely offset by weakness in IT stocks after the US paused visa appointments amid an immigration crackdown, which rekindled margin pressure concerns,” Nair said.
On the NSE, Nifty IT was the biggest drag among the major sectors, declining 1.47 per cent. Nifty FMCG fell 0.95 per cent, Nifty Consumer Durables declined 0.93 per cent, Nifty Realty lost 0.83 per cent, Nifty Auto fell 0.74 per cent, while Nifty Oil & Gas declined 0.58 per cent and Nifty Healthcare fell 0.07 per cent.
On the other hand, Nifty Metal gained 1.27 per cent, while Nifty Private Bank rose more than 1 per cent. Nifty PSU Bank gained 0.77 per cent, Nifty Pharma advanced 0.23 per cent, and Nifty Media rose 0.06 per cent.
Among Nifty 50 stocks, Kotak Bank, Axis Bank, JSW Steel, UltraTech Cement and HDFC Life were among the top gainers. Bharti Airtel, Power Grid and Infosys were among the major laggards.
Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said falling crude prices supported the market, while weakness in key sectors weighed on sentiment. “The fall in crude oil prices, owing to expectations of reduced tensions in the Strait of Hormuz region, helped, whereas underperforming sectors such as IT, auto, FMCG, and consumer durables weighed down the market,” Kasat said.
Brent crude oil prices fell more than 3 per cent on Wednesday amid easing tensions in West Asia. Gold remained elevated at Rs 1,62,120 per 10 grams for 24 karat, while silver traded at Rs 2,43,698 per kg.
Kasat said investors would continue to track global cues, US inflation data, crude oil movement and FII flows, while maintaining a selective approach towards fundamentally strong stocks.
Nair said investors are now awaiting the US Core PCE data for greater clarity on the interest rate outlook. A contained core reading, he said, could indicate that the recent energy-led inflation spike is temporary and could ease rate concerns and support flows into emerging markets.
In Asian markets, most major indices ended higher. Japan’s Nikkei 225 gained 0.68 per cent to close at 66,304, Hong Kong’s Hang Seng rose 0.50 per cent to 25,640, Taiwan’s weighted index advanced 1.45 per cent to 45,832, and South Korea’s KOSPI surged 0.96 per cent to 6,808. Singapore’s Straits Times Index declined 0.25 per cent to 5,721. (ANI)
