Indian equity benchmarks, the BSE Sensex and NSE Nifty, closed marginally lower on Wednesday, dragged down by persistent inflation worries. However, buying in information technology (IT) stocks helped limit the losses.
Market Performance
The 30-share BSE Sensex declined 103.90 points, or 0.17 percent, to settle at 60,033.34. The broader NSE Nifty slipped 27.80 points, or 0.16 percent, to end at 17,885.25. During the session, both indices traded in a narrow range, reflecting cautious sentiment among investors.
Sectoral Trends
Among sectoral indices, the Nifty IT index emerged as the top gainer, rising 0.8 percent. This was driven by strong buying in stocks like Infosys, HCL Technologies, and Wipro. On the other hand, banking and financial stocks witnessed selling pressure, with the Nifty Bank index falling 0.3 percent. Auto and metal stocks also ended in the red.
Key Movers and Shakers
- Top gainers on the Nifty: Infosys, HCL Technologies, Wipro, Nestle India, and Axis Bank.
- Top losers: IndusInd Bank, Mahindra & Mahindra, Hindalco, Tata Steel, and Bajaj Finserv.
Reasons for the Decline
Investors remained cautious ahead of the release of US inflation data, which could influence the Federal Reserve's monetary policy stance. Domestically, rising crude oil prices and concerns about retail inflation also weighed on market sentiment. The Consumer Price Index (CPI) inflation for September is scheduled to be released later this week, and any upside surprise could dampen expectations of a rate cut by the Reserve Bank of India.
Expert View
According to analysts, the market is in a consolidation phase, with participants awaiting fresh triggers. "The market is trading in a range-bound manner as inflation concerns persist. However, the IT sector is showing resilience due to strong demand outlook," said a market expert. They added that global cues, especially the US inflation data, will guide the market direction in the near term.
Global Market Cues
Global markets were mixed on Wednesday. Asian markets ended lower, while European markets traded in the green. US stock futures were flat ahead of the inflation data release. The dollar index remained elevated, putting pressure on emerging market currencies.
Outlook
Going forward, market participants will closely monitor inflation data, both domestic and global, along with corporate earnings for the September quarter. The IT sector is expected to continue its outperformance, while banking stocks may remain under pressure due to margin concerns. Overall, the market is likely to remain volatile in the near term.
