Mumbai: Indian equity markets closed lower for a second straight session on Wednesday as a sharp spike in crude oil prices and heavy selling in information technology stocks dragged the benchmarks down, despite a strong debut-related showing from Jio Platforms. The Sensex fell 352.64 points, or 0.48 per cent, to close at 73,246.03, while the Nifty slipped 50.90 points, or 0.22 per cent, to 22,698.85.
The session was volatile from the start. The Sensex touched an intraday low of 72,603.57 and the Nifty fell to 22,497.70 before buyers stepped in and pulled both indices well off their lows. The recovery, however, was not enough to turn the day positive, and the market ended with breadth tilted in favour of declines across large parts of the board.
Reliance Industries led the drag, falling 3.46 per cent, while Infosys dropped 3.34 per cent as investors cut exposure to technology exporters. Tata Consultancy Services fell 1.68 per cent, Tech Mahindra declined 1.83 per cent, Bharti Airtel lost 1.42 per cent and Tata Steel slipped 1.37 per cent. The selling in technology was broad-based: the Nifty IT index ended down 1.98 per cent, reflecting worries about client spending and the outlook for global technology budgets.
The oil and gas pack fared worse still, with the Nifty Oil and Gas index down 2.27 per cent even as crude prices rose — a reminder that for refiners and marketers, higher crude can squeeze margins even as it lifts the broader energy complex. Brent crude traded in the region of $114.5 to $116 a barrel during the session, a level that revives concerns about India’s import bill and about inflationary pressure feeding through to fuel and transport costs.
Not everything fell. Trent, State Bank of India, Axis Bank and InterGlobe Aviation were among the gainers, and the automobile index rose 1.45 per cent. Bank Nifty bucked the broader weakness altogether, gaining 292.50 points to close at 54,267.40, suggesting that domestic financials continue to attract support even when export-oriented sectors come under pressure.
Currency markets added to the cautious mood. The rupee settled at 95.28 against the dollar, down 21 paise on the day, as higher crude and a firm dollar weighed on the Indian currency. For importers and for companies with unhedged foreign currency exposure, the combination of expensive oil and a weaker rupee is a double burden.
Investors also had one eye on events beyond Indian shores. Caution ahead of the United States Federal Reserve’s policy decision, together with continuing tensions in West Asia, kept risk appetite in check through the session. Even the strength in Jio Platforms — up nearly 27 per cent on debut-related momentum to a market capitalisation of more than Rs 13 lakh crore, making it the second most valuable listed company — could not offset the broader selling.
For now, the market’s message is one of selective caution: domestic-facing banks and automobiles are finding buyers, while technology, energy and other globally exposed sectors are bearing the brunt of crude and currency worries. Whether the recovery from intraday lows marks a floor or merely a pause will depend, in large part, on crude’s next move and on what the Federal Reserve signals next.
