Nifty, Sensex close flat amid pressure from high crude prices and caution ahead of US Fed policy

The Nifty 50 index closed at 22,749.75, down 3.45 points or 0.02 per cent, while the BSE Sensex settled at 73,598.67, declining 8.08 points or 0.01 per cent.

Vinod Nair, Head of Research at Geojit Investments, said Indian equities ended flat after a volatile trading session, as high crude prices and caution ahead of the US Fed's policy decision overshadowed supportive global cues.

"Indian equities ended flat amid a volatile session, as elevated crude prices and caution ahead of the US Fed policy decision overshadowed supportive global cues. Profit booking dragged IT and private banks, while pharma, autos, PSU banks and realty gained, with resilient broader-market participation pointing to selective domestic risk appetite. Healthy Q2 earnings and robust domestic flows continue to provide a cushion against persistent foreign selling. However, Brent above USD 115 and a weaker INR pose risks to inflation, corporate margins and financing conditions. Going forward, market direction will hinge on earnings resilience, crude trends, evolving developments in the West Asia crisis and the Feds policy signal," Nair said.

Sectoral indices on the NSE witnessed a mixed trend. The Nifty IT index declined 0.81 per cent, while the Nifty Private Bank index lost 0.39 per cent. Among the gainers, the Nifty Auto index rose 1.20 per cent, the Nifty Media index gained 3.58 per cent, the Nifty Metal index advanced 0.49 per cent, the Nifty Pharma index climbed 1.72 per cent and the Nifty PSU Bank index gained 0.19 per cent.

Among Nifty 50 stocks, Tata Consumer, Bharti Airtel, BSE, Trent and Bajaj Auto were among the top gainers. Cipla, ITC, Coal India, TCS, Adani Enterprises and Infosys featured among the top losers.

Crude oil prices continued to remain elevated, with Brent trading at USD 116 per barrel, up 0.19 per cent at the time of reporting. Gold prices declined 0.54 per cent to Rs 1,42,300 per 10 grams for 24-karat gold, while silver prices fell 1.49 per cent to Rs 1,92,877 per 10 kg.

Rajeev Sharan, Head of Research at Brickwork Ratings, said the rupee had slipped back above 95 and was trading near 95.30 on Tuesday, with external factors driving the pressure.

"The striking feature is that the pressure is now almost entirely external. Brent is near USD 115, close to a six-month high. The rupee is a price-taker this week, caught between a supply shock in the Gulf and a rate call in Washington. So while the near-term direction will be set largely by global factors, the domestic buffers mean the RBI retains room to keep the moves orderly, with the rupee now testing the 95.30 area that traders see as the near-term pivot," Sharan said.

Asian markets closed on a mixed note. Japan's Nikkei 225 gained 1.85 per cent to close at 63,365, Taiwan's weighted index rose 0.12 per cent to 46,096, and South Korea's KOSPI advanced 3 per cent to 5,638. In contrast, Singapore's Straits Times declined 0.35 per cent to 5,397, while Hong Kong's Hang Seng index fell 1.15 per cent to 22,947. (ANI)