Sensex falls nearly 700 points as rising crude prices, FPI outflows weigh on markets

Indian equity benchmark indices opened sharply lower on Wednesday, with the Sensex falling nearly 700 points and the Nifty slipping below the 22,600 mark amid rising crude oil prices and continued foreign portfolio investor (FPI) outflows.

At the opening, the BSE Sensex stood at 72,907.65, down 691.02 points, or 0.94 per cent, from its previous close of 73,598.67. The index had opened at 73,253.44. The NSE Nifty 50 traded at 22,566.45, declining 183.30 points, or 0.81 per cent, from its previous close of 22,749.75.

The weakness in domestic markets came despite gains across major Asian markets and on Wall Street. Investors remained cautious amid geopolitical uncertainties and ahead of the US Federal Reserve’s policy meeting.

Brent crude rose 1.32 per cent to USD 115.39 per barrel, while crude oil gained 1.44 per cent to USD 101.34, adding to concerns over the impact of higher energy prices on the Indian economy.

Dr V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market had turned decisively weak, with indications pointing to a decline of around 250 points in the Nifty at the opening.

He cited reports of possible renewed US strikes on Iran after the US mid-term elections and the rise in Brent crude prices above USD 115 as key concerns for domestic markets.

Vijayakumar said a sustained recovery would depend on crude oil prices easing and foreign portfolio investors halting their persistent selling and turning net buyers. He also noted that changes to the long-term capital gains (LTCG) tax appeared increasingly likely amid the scale of foreign fund outflows.

Hemang Gor, Senior Research Analyst for Derivatives and Technical Research at Axis Direct, said market sentiment remained cautious following a largely flat October derivatives expiry. Profit-booking in information technology stocks and private banks had also weighed on the Bank Nifty in the previous session.

Gor identified 22,500 as an immediate support level for the Nifty. A break below this level could drag the index towards 22,300, while a sustained move above 22,900 could open the way towards 23,000–23,100.

Among individual stocks, IT shares came under pressure, with Infosys declining 4.34 per cent, Tech Mahindra falling 3.84 per cent and HCL Technologies losing 3.54 per cent. Larsen & Toubro gained 5.73 per cent, while Bajaj Auto advanced 2.31 per cent.

Shares of Jio Platforms remained in focus as the company was set to make its stock market debut on Wednesday at an issue price of Rs 1,119 per share, at the upper end of its price band. According to exchange data cited in the report, the initial public offering was subscribed 22.19 times.

Sectoral indices were largely negative, with the Nifty IT index leading the losses, declining 3.77 per cent. The Nifty FMCG index fell 1.51 per cent, while financial services, media, metal, pharmaceutical and PSU bank indices also traded lower. The Nifty Auto index bucked the trend, rising 0.17 per cent.

In Asian markets, South Korea’s KOSPI gained 6.22 per cent, while Japan’s Nikkei 225 rose 1.51 per cent.

-ANI