Sensex, Nifty50 end lower amid increased volatility and mixed global cues – pharma, metal, IT stocks decline

• Sensex ended 17.15 points or 0.03% lower at 60,910.28 while the 50-stock index Nifty50 closed 9.80 points or 0.05% down at 18,122.50.
• Global markets were mixed on Wednesday amid rising concerns of inflation surging as China announced relaxation of Covid restrictions.
• Among sectoral indices pharma, metal, IT and banks ended in the red, while auto, energy, media and realty gained.

India’s benchmark indices Sensex and Nifty50 closed marginally lower after a choppy session on Wednesday amid increased volatility and mixed global cues.

Sensex ended 17 points or 0.03% lower at 60,910 while the 50-stock index Nifty50 closed 10 points or 0.05% down at 18,123.

Among sectoral indices pharma, metal, IT and banks ended in the red, while auto, energy, media and realty gained.

“Markets wavered between gains and losses with investors taking their position around the flatline as mixed global cues troubled them to take a firm one-sided move. US stocks were weak as the trade deficit data suggested strength in the economy, raising concerns about the Fed's tightening stance. However, steps toward reopening the Chinese economy increased the prospects of demand recovery,” said Vinod Nair, head of research at Geojit Financial Services.

Equity markets around the world were mixed amid rising concerns of inflation surging as China announced relaxation of Covid restrictions. US treasury yields also rose on this account, adding to the pressure on equity markets in a holiday-shortened week.

“Global equities traded sideways on Wednesday after China took further steps towards reopening its Covid-battered economy; however hopes for an economic rebound were moderated by near-term worries over rising cases,” said Deepak Jasani, head of retail research at HDFC Securities.

In the Nifty50 index, Titan, M&M and Power Grid Corporation of India were top gainers while Bharti Airtel, Apollo Hospitals and Bajaj Finserv were amongst the top losers.

Here are top moving stocks on Nifty500

Among individual stocks, shares of Rail Vikas Nigam hit an upper circuit of 5% after the company received a letter of award for appointment as project implementation agency for the UTF Harbor project in Maldives.

Earlier yesterday, Sensex rose 0.6% to close at 60,927 points, while Nifty50 gained 0.65% to close at 18,132 points, led by a rally in metal and realty stocks.

Rupee closed flat against the US dollar on Wednesday, at 82.86. “The Indian rupee erased opening losses as domestic equities strengthened ahead of the year-end adjustment. Today’s gain was followed by the year-end fixing and lower crude oil prices,” said Dilip Parmar, research analyst at HDFC Securities.

Crude oil prices cooled down a little, falling 0.64% to $84.09 from $84.82 per barrel earlier in the morning today. Russia, one of the major crude oil suppliers, has announced a ban on supply of crude oil to countries that imposed the price cap. The ban will go into effect in February 2023.

The benchmark S&P 500 fell 0.4%, while Dow Jones Industrial Average was marginally up by 0.11%. The tech-heavy Nasdaq fell 1.38%, however, led by a rout in the Tesla stock which continued to decline and fell 11%.

Markets in Asia were mixed, too, with the Hang Seng index ending with gains of 1.56% gains while the Taiwan Weighted index declined 1.08%, KOSPI fell 2.24%, Nikkei 225 declined 0.41%, and the Shanghai Composite index closed 0.26% lower.

Foreign institutional investors (FII) were net sellers on Wednesday pulling out ₹872.59 crore while domestic institutional investors (DII) bought ₹372.87 crore.

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