Business News | Sensex Falls 143 Points, Nifty Slips 0.34% as Crude Above USD 110 Fuels Inflation Concerns
Get latest articles and stories on Business at LatestLY. Indian stock markets closed lower on Wednesday after giving up early session gains as rising crude oil prices raised concerns over imported inflation, corporate margins and the rupee.
Mumbai (Maharashtra) [India] October 21 (ANI): Indian stock markets closed lower on Wednesday after giving up early session gains as rising crude oil prices raised concerns over imported inflation, corporate margins and the rupee.
The NIFTY 50 index closed at 22,811.35, declining 77.60 points or 0.34 per cent, while the BSE Sensex fell 143.21 points or 0.19 per cent to close at 73,709.69.
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Vinod Nair, Head of Research at Geojit Investments, said, "Indian equities gave up strong early gains as elevated crude prices and continued FII selling overshadowed optimism surrounding India-US trade negotiations. Resilient Q2 earnings and robust domestic institutional flows remain important market supports, but weak breadth and persistent foreign selling point to continued caution”.
He further added, “Near-term direction will depend on the breadth of earnings delivery, progress on trade negotiations and foreign flows, with durable moderation in crude, global yields and currency volatility crucial for market stability."
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On the National Stock Exchange (NSE), the Nifty IT index was the only major sectoral index to close in positive territory, rising 2.52 per cent. Most other major sectoral indices ended in the red.
The Nifty Auto index declined 1.99 per cent, while the Nifty Metal index fell 1.97 per cent. The Nifty Realty index lost 1.57 per cent, the Nifty Media index declined 1.24 per cent, the Nifty Private Bank index fell 1.16 per cent and the Nifty FMCG index dropped 0.89 per cent.
Brent crude oil prices continued their upward movement, rising 1.31 per cent to USD 110.15 per barrel at the time of reporting. Higher crude prices have raised concerns about India's import bill and the impact on inflation, corporate margins and the domestic currency.
Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said, "Indian equities came under renewed selling pressure after surrendering early gains. Brent crude trading above USD 110 per barrel raises concerns over imported inflation, corporate margins and the rupee, which strengthened to Rs 94.71 against the US dollar. Markets may remain volatile; investors should track geopolitical developments, crude prices and earnings, favouring fundamentally strong stocks."
In the commodities market, gold prices declined 0.49 per cent to Rs 1,45,803 per 10 grams for 24-karat gold. Silver prices fell 1.15 per cent to Rs 2,09,061 per kg at the time of reporting.
Meanwhile, most major Asian markets closed higher on Wednesday. Japan's Nikkei 225 index gained 0.98 per cent to close at 64,711, while Singapore's Straits Times index rose 0.63 per cent to 5,437.
Taiwan's weighted index advanced 1.27 per cent to close at 46,887, and South Korea's KOSPI index gained 3.19 per cent to settle at 5,735. Hong Kong's Hang Seng index was the only one among the listed Asian markets to close lower, declining 0.95 per cent to 23,644. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)