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The benchmark indices closed lower on Wednesday, with the Sensex declining 570.59 points, or 0.79 per cent, while the Nifty 50 fell 198.50 points, or 0.88 per cent, as elevated crude oil prices and concerns over global economic conditions weighed on investor sentiment.
The Nifty 50 index closed at 22,421.95, down by 198.50 points or 0.88 per cent, while the BSE Sensex closed at 71,909.70, declining 570.59 points or 0.79 per cent. The market sell-off was largely driven by external factors, with bond yields reaching multi-year highs and crude oil prices remaining elevated, according to Vinod Nair, Head of Research, Geojit Investments Limited. Q2 earnings are expected to be softer than Q1, which benefited from the lagged impact of operating costs, which may not be as available this time, Nair said. He added that investors were also cautious ahead of the second-quarter results and the upcoming RBI policy next week. Nevertheless, it is important to note that India's economy remains resilient and is well positioned to navigate these challenges, Nair said. Among sectoral indices on the NSE, Nifty Auto was the biggest laggard, falling more than 3 per cent. Nifty Metal declined 2.35 per cent, while Nifty Media fell 2.33 per cent. Nifty Consumer Durables declined 1.91 per cent, Nifty FMCG fell 1.61 per cent, and Nifty Realty dropped 1.46 per cent. Nifty Oil and Gas declined 1.32 per cent, while Nifty PSU Bank fell 0.98 per cent. Crude oil prices remained a key concern for investors. Brent crude prices surged 2.59 per cent to USD 100 per barrel at the time of reporting, keeping crude prices elevated. Gold prices also gained 0.57 per cent to Rs 1,46,950 per 10 grams for 24 karat, while silver prices rose 0.35 per cent to Rs 2,24,523 per kg at the time of reporting. Vinit Bolinjkar Head of Research Ventura said, September was a weak month overall. The Nifty fell for seven straight weeks, pressured by volatile crude oil prices, rising global bond yields, and steady FII selling. Within this, Auto, Realty, Consumer Durables and Financial Services held up better and even posted gains on value buying, while IT and Pharma dragged the index down due to weak global demand cues and currency-related concerns. Broader markets (mid and small caps) were more volatile than large caps during the month." Meanwhile, the other Asian markets ended largely higher. Japan's Nikkei 225 surged more than 3 per cent to close at 68,955. Hong Kong's Hang Seng gained 0.36 per cent to close at 24,613, while Taiwan's Weighted Index rose 0.85 per cent to close at 48,353. South Korea's KOSPI gained 1.91 per cent to close at 6,971, while Singapore's Straits Times declined 0.14 per cent to 5,667. (ANI)
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