Mumbai, India, Aug. 26: Indian equity markets ended lower Wednesday, with the Nifty 50 declining 0.52% and the Sensex falling 0.24%, as weakness in IT, auto, FMCG and consumer durables stocks offset gains in banking and metal shares.
The Nifty 50 index closed at 24,207.75, down 126.80 points, or 0.52%, while the BSE Sensex closed at 77,472.94, declining 183.15 points, or 0.24%.
Vinod Nair, head of research at Geojit Investments Limited, said the domestic market gave up its early gains as sectoral divergence weighed on the benchmarks.
“Inflation concerns receded on tempered U.S. sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realization prospects. However, these gains were largely offset by weakness in IT stocks after the U.S. paused visa appointments amid an immigration crackdown, which rekindled margin pressure concerns,” Nair said.
On the NSE, Nifty IT was the biggest drag among the major sectors, declining 1.47%. Nifty FMCG fell 0.95%, Nifty Consumer Durables declined 0.93%, Nifty Realty lost 0.83%, Nifty Auto fell 0.74%, Nifty Oil & Gas declined 0.58%, and Nifty Healthcare fell 0.07%.
On the other hand, Nifty Metal gained 1.27%, while Nifty Private Bank rose more than 1%. Nifty PSU Bank gained 0.77%, Nifty Pharma advanced 0.23%, and Nifty Media rose 0.06%.
Among Nifty 50 stocks, Kotak Bank, Axis Bank, JSW Steel, UltraTech Cement and HDFC Life were among the top gainers. Bharti Airtel, Power Grid and Infosys were among the major laggards.
Vikram Kasat, chief business officer — advisory and dealing at PL Capital, said falling crude prices supported the market, while weakness in key sectors weighed on sentiment.
“The fall in crude oil prices, owing to expectations of reduced tensions in the Strait of Hormuz region, helped, whereas underperforming sectors such as IT, auto, FMCG and consumer durables weighed down the market,” Kasat said.
Brent crude oil prices fell more than 3% Wednesday amid easing tensions in West Asia. Gold remained elevated at Rs 1,62,120 per 10 grams for 24-karat purity, while silver traded at Rs 2,43,698 per kilogram.
Kasat said investors would continue to track global cues, U.S. inflation data, crude oil movements and foreign institutional investor flows while maintaining a selective approach toward fundamentally strong stocks.
Nair said investors are now awaiting the U.S. Core PCE data for greater clarity on the interest rate outlook. A contained core reading, he said, could indicate that the recent energy-led inflation spike is temporary, potentially easing concerns over interest rates and supporting flows into emerging markets.
In Asian markets, most major indexes ended higher. Japan’s Nikkei 225 gained 0.68% to close at 66,304, Hong Kong’s Hang Seng rose 0.50% to 25,640, Taiwan’s weighted index advanced 1.45% to 45,832, and South Korea’s KOSPI surged 0.96% to 6,808. Singapore’s Straits Times Index declined 0.25% to 5,721. (ANI)
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