Mumbai: Indian benchmark indices ended lower for the second consecutive session on Wednesday as firm crude oil prices and uncertainty over reopening the Strait of Hormuz kept investors cautious.
The Sensex declined 187.90 points, or 0.24 percent, to close at 77,966.35. The Nifty fell 35.75 points, or 0.15 percent, to settle at 24,435.95.
Oil Concerns
Investor sentiment remained weak amid worries about global energy supplies, which continued to support crude oil prices.
Higher crude prices are generally negative for India because the country imports most of its oil requirements. Expensive oil can raise inflation, increase import costs and widen the trade deficit.
Uncertainty surrounding a possible agreement to reopen the Strait of Hormuz also kept investors from taking aggressive positions in the equity market.
IT Stocks Drag
Tata Consultancy Services, Max Healthcare Institute and Apollo Hospitals Enterprise were among the biggest losers on the Nifty and pulled the benchmark lower.
The Nifty IT index emerged as the worst-performing sectoral gauge, falling 1.54 percent as technology shares faced sustained selling pressure.
However, buying in public-sector bank shares helped limit the market’s overall decline. The Nifty PSU Bank index advanced 2 percent, becoming the strongest sectoral performer of the session.
Broader Markets Mixed
The broader market ended on a mixed note. The Nifty MidCap index outperformed the benchmark indices with a gain of 0.28 percent, while the Nifty SmallCap index slipped 0.18 percent.
Key Technical Levels
Market experts said the Nifty found support near its 200-hour simple moving average before recovering. It also managed to close above its 20-day exponential moving average.
A sustained fall below 24,400 could drag the index towards 24,180. On the upside, 24,500 is expected to remain a crucial resistance level. A firm move above it may improve the near-term trend.
Investors are now awaiting the US inflation report, which could influence expectations around the Federal Reserve’s future interest-rate policy and determine the direction of global markets in the coming sessions.
