Mumbai: The Indian equity markets posted moderate losses in early trade on Wednesday over cautious sentiment amid the ongoing war between US-Israel and Iran, leading to the prolonged closure of the Strait of Hormuz.
As of 9.25 am, Sensex lost 109 points, or 0.14 per cent, to reach 78,096 and Nifty eased 26 points, or 0.11 per cent to reach 24,234.
Main broad-cap indices showed divergence with the benchmark indices, as the Nifty Midcap 100 gained 0.72 per cent, and the Nifty Smallcap 100 added 0.85 per cent.
All sectoral indices traded in green except Nifty FMCG, financial services and private banks. Private banks led the losses down 0.73 per cent. Nifty media, metal and consumer durables were among the top gainers, up 1.52 per cent, 1.58 per cent and 1.25 per cent, respectively.
Near-term resistance for Nifty is placed at 24370-24416 area, while strong support spans the 23700-24080 zone, analysts said.
Derivatives data from yesterday’s session showed that foreign investors and proprietary traders remained positive, while retail investors went bearish, they added.
Resistance for Bank Nifty is seen near 57,200–57,300 zone, while support is located in the 56,600–56,700 zone, market participants said.
Sectorally, auto, financials, and consumer-oriented stocks led the recovery in the previous session, while some pressure was seen in select IT and oil & gas counters. Broader markets also remained firm, with midcap and small-cap stocks outperforming the frontline indices, reflecting selective buying interest across sectors.
On Wednesday, markets remained unsettled over fading hopes for an early end to the US-Israeli war on Iran and stagflation concerns compounded by US President Donald Trump’s threat of retaliations following reports of Iran mining the Strait of Hormuz.
Oil prices which had earlier this week touched $120 a barrel, dropped below 90-mark over reports of a group of countries planning to tap emergency crude reserves to mitigate disruption caused by the conflict.
International Brent crude was down 0.44 per cent at $87.39 per barrel early on Wednesday.
In Asian markets, China’s Shanghai advanced 0.05 per cent, and Shenzhen added 0.85 per cent, Japan’s Nikkei moved up 2.48 per cent, and Hong Kong’s Hang Seng Index surged 0.33 per cent. South Korea’s Kospi gained 3.41 per cent.
The US markets ended mixed overnight as Nasdaq added 0.01 per cent. The S&P 500 lost 0.21 per cent, and the Dow Jones declined 0.07 per cent.
On March 10, foreign institutional investors (FIIs) net sold equities worth Rs 4,685 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 6,250 crore.
(IANS)
