Stock Markets Extend Losses For Second Day Amid Banking And Oil & Gas Selling
New Delhi, May 27: Indian stock markets ended lower for the second consecutive session on Wednesday as investors remained cautious amid geopolitical uncertainty, foreign institutional investor selling and elevated crude oil prices.
Weakness in banking, financial, oil & gas and IT stocks dragged the markets lower, although gains in metal, power and auto shares helped limit the overall decline.
Sensex And Nifty End Lower After Volatile Session
The 30-share BSE Sensex declined 141.90 points or 0.19 per cent to close at 75,867.80. During the trading session, the index moved sharply between an intraday high of 76,224.68 and a low of 75,748.21.
Meanwhile, the NSE Nifty 50 slipped 6.55 points or 0.03 per cent to settle at 23,907.15.
This marked the second straight day of losses for benchmark indices after Tuesday’s sharp fall triggered by global uncertainty and investor caution.
Banking And Oil & Gas Stocks Drag Markets Down
Financial and private banking shares emerged as the biggest losers during the session.
Shares of HDFC Bank fell the most among Sensex constituents, dropping 2.63 per cent. Other major laggards included Infosys, ITC, Reliance Industries and ICICI Bank.
Sectoral indices also reflected the pressure on financial counters. The Top 10 Banks index declined 0.90 per cent, while Private Banks, Financial Services and Bankex indices also ended lower.
Analysts said investors remained worried about rising crude oil prices and uncertain geopolitical developments involving the US and Iran, which continued to affect market sentiment.
Metals, Power And Auto Shares Offer Support
Despite weakness in frontline banking stocks, several sectors managed to post gains and reduce the market’s downside.
Power, utilities and capital goods stocks witnessed strong buying interest during the session. The Capital Goods index surged more than 3 per cent, while Power, Utilities and Metal indices also closed firmly higher.
Among Sensex gainers, Power Grid Corporation of India, NTPC and Tata Steel ended in positive territory.
Auto stocks also attracted investor interest as traders rotated funds into relatively defensive and domestic-focused sectors.
Global Concerns And FII Selling Keep Investors Cautious
Market experts said uncertainty surrounding the fragile US-Iran situation and continued foreign fund outflows kept investors in a wait-and-watch mode.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth ₹2,407.87 crore on Tuesday, adding pressure on domestic markets.
Meanwhile, Brent crude prices remained elevated despite a slight decline, with oil trading around USD 96 per barrel. Higher crude prices are generally seen as negative for India because the country imports a large portion of its oil requirements.
The Indian rupee also weakened slightly, slipping by 3 paise to close at 95.73 against the US dollar.
Asian markets delivered mixed performances, while most European markets traded in positive territory during the day. Investors are now expected to closely monitor global geopolitical developments, crude oil movement and foreign fund activity for further market direction.
Stock and forex markets will remain closed on Thursday on account of Bakri Id.
