Indian Equity Markets Post Mixed Day: Sensex Declines 200 Points, Nifty Stalls Near 23,700
Indian Stock Market Indices Pare Gains Amid Weak Global Cues and Rupee Decline
The benchmark equity indices Sensex and Nifty trimmed their gains on Tuesday as investors booked profits at higher levels in response to weak global cues and a soft rupee.
In early trade, the Sensex rose by 431.23 points, or 0.57 percent, to 75,746.27, while the Nifty advanced to 23,782.30, gaining 132.35 points or 0.55 percent. However, the indices later pared their gains further from the day's high as selling pressure emerged post-noon. At 1 pm, the Sensex was trading at 75,537.43, still up 222.39 points or 0.3 percent, while the Nifty stood at 23,715.40, up 65.45 points or 0.28 percent.
Investors resorted to profit booking at higher levels. On Monday, the BSE benchmark rose 77.05 points or 0.10 percent to close at 75,315.04. The Nifty gained 6.45 points or 0.03 percent to settle at 23,649.95.
The rupee opened on a negative note amid a strong dollar and higher US treasury yields, and depreciated 18 paise to 96.38 against the US dollar. Market sentiment remained under pressure due to rising tensions between the US and Iran. The rupee's decline is particularly concerning for forex traders, who point to rising crude oil prices and concerns over disruption in trade flows through the Strait of Hormuz.
| Market Index | Monday's Close | Tuesday's High | Tuesday's Close |
|---|---|---|---|
| Sensex | 75,315.04 | 75,746.27 | 75,537.43 |
| Nifty | 23,649.95 | 23,782.30 | 23,715.40 |
Forex traders said the rupee remained vulnerable to rising crude oil prices and concerns over disruption in trade flows through the Strait of Hormuz, which could impact exports and imports with Gulf countries. The interbank foreign exchange market saw the rupee open at 96.38 against the US dollar, down 18 paise from its previous close.
Market analysts, such as Anand James, Chief Market Strategist at Geojit Investments, are cautious in their outlook. James noted that while the market's momentum has been sufficient to reclaim key levels, a failure to push beyond 23,730 or a direct fall below 23,489 could bring 22,800 back into focus.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should be cautious and book profits at higher levels due to weak global cues.
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