Noida, Sep 30 (APAC Media): Indian equity benchmarks BSE Sensex and NSE Nifty ended lower on Wednesday, weighed down by sustained foreign fund outflows, elevated crude oil prices and weak global cues, as investors remained cautious amid geopolitical uncertainties and higher global bond yields.
The BSE Sensex declined 49 points, or 0.7 per cent, to settle at 72,480.07, while the NSE Nifty50 fell 96 points, or 0.42 per cent, to 22,620.45.
Foreign institutional investors remained net sellers in the Indian equity market, putting pressure on domestic benchmarks.
According to exchange data, foreign investors sold equities worth Rs 9,980.22 crore on Wednesday, following an outflow of Rs 5,353.22 crore in the previous session.
“The market’s direction will remain closely linked to crude prices, geopolitical developments and FII flows,” said Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital.
He said investors should focus on companies with earnings visibility and strong balance sheets and consider a staggered approach amid continued market volatility.
Rising crude oil prices also weighed on sentiment, with investors concerned about the impact of higher import costs on India’s inflation, trade deficit and corporate profitability.
Global market cues remained mixed as investors tracked US Treasury yields, the dollar’s movement and developments around geopolitical tensions. Higher global yields can reduce the attractiveness of emerging-market assets and encourage foreign investors to shift funds towards dollar-denominated assets.
Despite the pressure on equities, domestic economic data provided some support to investor sentiment. India’s industrial production grew 8 per cent in August, accelerating from 7.4 per cent in July, supported by stronger manufacturing activity.
The session also marked a major change in the Nifty50 index. BSE Ltd was added to the benchmark index, replacing Wipro as part of the NSE’s periodic index reshuffle.
Market participants are now expected to track foreign fund flows, crude oil prices, the rupee’s movement, global interest-rate expectations and geopolitical developments for further direction.
Indian equities have faced heightened volatility in September, with concerns over foreign outflows, elevated oil prices and global monetary conditions weighing on investor sentiment.
Analysts said near-term market movement could remain sensitive to global risk factors and institutional flows, while domestic economic indicators and upcoming corporate earnings would remain important for the broader market.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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