Mumbai: The benchmark equity indices, the Sensex and the Nifty, ended lower for the second consecutive session on Wednesday as elevated crude oil prices and uncertainty surrounding a potential deal to reopen the Strait of Hormuz kept investors cautious.
The Sensex fell 187.90 points, or 0.24 per cent, to close at 77,966.35, while the Nifty shed 35.75 points, or 0.15 per cent, to settle at 24,435.95.
Commenting on Nifty technical outlook, experts said that the index continues to fall after slipping below 24,400, leading to a decline towards 24,250.
“On the lower end, it found support around the 200-hour SMA before staging a recovery. On the daily timeframe, the index has managed to close above the 20EMA,” an analyst stated.
“A sustained fall below 24,400 on Thursday might again drag the index towards 24,180. On the higher end, 24,500 is likely to act as a crucial resistance, and a sustained move above this level might improve the trend,” as per the expert.
Investor sentiment remained subdued as concerns over global energy supplies supported crude oil prices, prompting caution across equity markets.
Rising oil prices are generally viewed negatively for India, a major importer of crude, as they can increase inflationary pressures and widen the country’s trade deficit.
Among the Nifty constituents, Tata Consultancy Services (TCS), Max Healthcare Institute and Apollo Hospitals Enterprise emerged as the top losers, dragging the benchmark index lower.
The broader market performance was mixed. The Nifty MidCap index managed to outperform the frontline gauges, rising 0.28 per cent, while the Nifty SmallCap index slipped 0.18 per cent.
Sectoral trends were also divergent. The Nifty IT index was the worst-performing sectoral gauge of the day, declining 1.54 per cent as technology stocks came under selling pressure.
In contrast, the Nifty PSU Bank index gained 2 per cent, emerging as the top sectoral performer and helping limit losses in the broader market.
“The U.S. inflation report remains the key event on investors’ radar, with the outcome expected to influence expectations for the Federal Reserve’s policy direction and, in turn, shape sentiment across global financial markets,” a market expert stated.
(IANS)
