Oil Prices, FPI Outflows Trigger Sharp Selloff In Indian Markets
(RTTNews) - Despite staying positive for most part of the trading session, key Indian stock indices Sensex and the Nifty50 ended weak on Wednesday due to heavy selling at several counters in the final hour.
Elevated oil prices and presumably heavy selling by foreign portfolio investors contributed to market's sharp slide in the closing minutes. FPIs had sold shares worth a net Rs 9940 crore (approximately) on Tuesday.
Investors closely tracked crude oil prices and looked ahead to the crucial U.S. inflation data, due later in the day.
Brent crude futures for December delivery climbed to $97.70 a barrel, and were up 1.2% at $97.30 a barrel a little while ago. Lingering concerns about energy supply due to a lack of progress in U.S.-Iran negotiations to reopen the Strait of Hormuz continued to render the oil market quite volatile.
The benchmark BSE Sensex fell nearly 600 points from the day's high to settle at 72,480.29, down 48.78 points or 0.07% from previous close. The National Stock Exchange's Nifty50, which climbed to 22,809.35, closed at 22,620.45, losing 95.75 points or 0.42%.
Eternal, Sun Pharmaceuticals, Titan, Adani Ports, Tata Steel, HDFC Bank, Bajaj Finance, Infosys and Bharti Airtel lost 1%-2.3%.
The much larger decline of the Nifty50 was due to sharp losses posted by Apollo Hospitals Enterprises, Max Health, BSE, Nestle India, Cipla and SBI Life, which lost between 2%-5.7%.
Tata Consumer Products, ONGC, Dr. Reddy's Laboratories, Hindalco and Grasim Industries also declined sharply.
Kotak Bank, ICICI Bank, Indigo, Axis Bank and UltraTech Cement gained 1%-3%.
Shriram Finance, Tata Motors Passenger Vehicles, Tata Consultancy Services, Tech Mahindra and Hind Unilever also closed higher.
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