MUMBAI, India, October 21 (ANI) — Indian stock markets closed lower Wednesday after giving up early gains as rising crude oil prices fueled concerns about imported inflation, corporate margins and the rupee.
The NIFTY 50 index closed at 22,811.35, down 77.60 points, or 0.34%, while the BSE Sensex fell 143.21 points, or 0.19%, to close at 73,709.69.
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 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.”
On the National Stock Exchange (NSE), the Nifty IT index was the only major sectoral index to close in positive territory, rising 2.52%. Most other major sectoral indices ended in the red.
The Nifty Auto index declined 1.99%, while the Nifty Metal index fell 1.97%. The Nifty Realty index lost 1.57%, the Nifty Media index declined 1.24%, the Nifty Private Bank index fell 1.16% and the Nifty FMCG index dropped 0.89%.
Brent crude oil prices continued to rise, gaining 1.31% to $110.15 per barrel at the time of reporting. Higher crude prices have raised concerns about India’s import bill and the potential impact on inflation, corporate margins and the domestic currency.
Vikram Kasat, chief business officer for advisory and dealing at PL Capital, said, “Indian equities came under renewed selling pressure after surrendering early gains. Brent crude trading above $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, favoring fundamentally strong stocks.”
In the commodities market, gold prices declined 0.49% to Rs. 145,803 per 10 grams for 24-karat gold. Silver prices fell 1.15% to Rs. 209,061 per kilogram at the time of reporting.
Meanwhile, most major Asian markets closed higher Wednesday. Japan’s Nikkei 225 index gained 0.98% to close at 64,711, while Singapore’s Straits Times Index rose 0.63% to 5,437.
Taiwan’s Weighted Index advanced 1.27% to close at 46,887, and South Korea’s KOSPI index gained 3.19% 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% to 23,644. (ANI)
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