Indian shares fell on Wednesday as investors assessed surging crude oil prices, geopolitical tensions in the Middle East, and weakening Tata Group stocks, with cautious trading ahead of inflation data in India and the US.
Indian shares slipped on Wednesday as investors weighed a fresh jump in crude oil prices, renewed concern over tensions in the Middle East and weakness in Tata Group stocks, while the rupee also softened against the dollar. The BSE Sensex closed down 187.90 points, or 0.24%, at 77,966.35 and the NSE Nifty 50 finished 35.75 points lower, or 0.15%, at 24,435.95, according to market data.
TCS led the blue-chip laggards with a fall of 3.71%, while Mahindra & Mahindra lost 1.67% and Tata Steel dropped 1.57%. By contrast, State Bank of India, Bharti Airtel, Reliance Industries and Bharat Electronics all posted gains. The session extended a pattern seen in recent weeks, when rising oil prices, a weaker rupee and profit-taking also drove broader losses in Indian equities, including a heavier decline on July 22 when the Sensex shed more than 700 points.
Vinod Nair, head of research at Geojit Investments, said investors were cautious ahead of key inflation readings in India and the United States, with policymakers in both economies taking a data-dependent approach. He added that the rebound in crude had revived inflation worries, while uncertainty around the Strait of Hormuz and US-Iran negotiations kept risk appetite subdued. Nair said pharma and select IT shares found relative support, even as sectors more exposed to energy costs came under pressure.
Sector performance was mixed. Nifty Infrastructure, Energy and Pharma ended marginally higher, but Nifty IT fell 1.54%, Consumer Durables lost 0.45%, FMCG declined 0.73% and Auto slipped 0.32%. PSU banks continued to outperform on expectations of healthy credit growth and solid asset quality, while metal shares also held up better on supply concerns. The India VIX eased, suggesting some calm beneath the day’s caution, but traders remained focused on inflation data and the path of oil prices.
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