Sensex Falls 417 Points as Oil Prices Raise Inflation Concerns; Rupee Strengthens
Mumbai — Indian stocks ended lower Thursday after giving up gains made earlier in the session, as rising crude oil prices and bond-yield movements fueled concerns about inflation and the possibility that interest rates could remain elevated.
The Sensex fell 417.49 points, or 0.55%, to close at 76,152.86. The Nifty declined 41 points, or 0.17%, to 23,873.45.
Market analysts said the 24,000 level remains an important resistance point for the Nifty, while 23,800 is seen as a key near-term support level.
A decisive fall below 23,800 could increase selling pressure and push the index toward 23,600, according to market experts.
Investor sentiment remained cautious as higher crude prices raised concerns about their impact on inflation. Movements in bond yields also contributed to expectations that borrowing costs could stay higher for longer.
Among Nifty stocks, Bajaj Auto, Tech Mahindra and Trent were among the biggest decliners.
Broader markets performed better than the benchmark indices. The Nifty MidCap index gained 0.37%, while the Nifty SmallCap index rose 1.2%.
Sectoral performance was mixed. The Nifty Realty index was the biggest loser, falling more than 2%, while the Media, Private Bank, PSU Bank and Bank indices also ended lower.
The IT, Auto, FMCG and Healthcare sectors also lagged the broader market during the session.
Meanwhile, the rupee strengthened to 94.48 against the U.S. dollar, supported by improved dollar liquidity and foreign currency non-resident deposits.
Analysts said the rupee is expected to retain a positive bias, with the currency likely to trade in a range of 94.25 to 95.00 against the dollar in the near term. (Source: IANS)
