Indian equity benchmarks the BSE Sensex and the NSE Nifty recovered from intraday losses to close flat on Thursday, as elevated crude oil prices and a weakening rupee dampened investor sentiment.
Market Performance
The 30-share BSE Sensex ended 12.22 points, or 0.02 percent, lower at 59,832.97, after swinging between a high of 59,898.58 and a low of 59,649.85 during the session. The broader NSE Nifty slipped 3.30 points, or 0.02 percent, to settle at 17,636.60, with 26 of its constituents closing in the red.
Sectoral Trends
Among sectoral indices, the Nifty Metal index fell over 1 percent, while the Nifty Pharma and Nifty Healthcare indices also declined. However, the Nifty IT index gained nearly 1 percent, providing some support to the benchmarks.
Top losers on the Sensex included Mahindra & Mahindra, Tata Steel, and Hindustan Unilever, while gainers were led by Tech Mahindra, Infosys, and HCL Technologies.
Factors Influencing the Market
Crude Oil Prices
Global crude oil prices remained elevated, with Brent crude hovering above $95 per barrel, raising concerns about inflation and its impact on the Indian economy. Higher oil prices increase India's import bill and widen the current account deficit.
Rupee Weakness
The Indian rupee weakened to a record low of 83.22 against the US dollar, adding to the pressure on the markets. A weaker rupee makes imports costlier and can lead to higher inflation.
Global Cues
Asian markets traded mixed, while European markets opened lower amid worries over rising interest rates and geopolitical tensions. Investors also awaited the US Federal Reserve's policy meeting minutes for further direction.
Outlook
Analysts expect the market to remain volatile in the near term, with a focus on global cues, crude oil prices, and the trajectory of the rupee. The upcoming quarterly earnings season will also be a key driver for stock-specific action.
