Indian benchmark indices Sensex and Nifty snapped a three-day losing streak on September 10, climbing 138.36 points and 46.30 points respectively. The recovery was driven by value buying from lower levels and gains in key financial and real estate shares, though elevated crude oil prices and global caution kept overall market sentiment restrained.
Domestic equities managed to break their recent downward trajectory as investors stepped in for selective bargain hunting after markets fell for six straight sessions. The 30-share BSE Sensex advanced 138.36 points, or 0.19 per cent, to settle at 74,902.59 after touching an intraday low of 74,598.47 and a high of 74,910.96. Meanwhile, the 50-share NSE Nifty edged higher by 46.30 points, or 0.20 per cent, to end at 23,477.80, reclaiming the psychologically significant 23,450 mark. About 1,872 shares advanced, 2,272 shares declined, and 154 shares were unchanged. Benchmark indices Sensex and Nifty snapped three-day losses and closed in green on September 10 due to various reasons, including value buying. Sensex settled 300 points higher from day’s low.
Sectoral Divergence and Blue-Chip Buying
The day’s modest recovery was anchored by buying in real estate and financial counters, which helped offset persistent weakness across IT, pharma, and auto sectors. IT, Pharma, Auto sectors saw declines. Heavyweights provided crucial stabilization, with fag-end buying in blue-chip HDFC Bank and Axis Bank supporting the indices through the closing hours.
Power Grid Corp. of India and HDFC Life Insurance Co. rose nearly 2 percent and were the top gainers in the Nifty 50 index. Select financial services stocks were up after falling in early trade. Shares of Axis Bank, Bajaj Finance, State Bank of India, and Shriram Finance were up around 1 percent each. Shares of index heavyweight HDFC Bank gained more and were up nearly 1 percent as well. Among the 30 Sensex firms, Power Grid, Axis Bank, UltraTech Cement, NTPC, Tech Mahindra, Bharti Airtel, HDFC Bank, and Larsen & Toubro were the major winners. In contrast, HCL Technologies extended losses and were down nearly 2 percent, the worst hit in the Nifty 50. Information technology stocks Wipro, Tata Consultancy, and Infosys were down marginally after gaining in early trade. Healthcare stocks fell further, with shares of Sun Pharmaceuticals falling nearly 1 percent. Max Healthcare Institute, Dr. Reddy’s Laboratory, and Apollo Hospitals Enterprise fell 0.3–0.6 percent. HCL Tech, Tata Steel, Trent, and ITC were among the laggards.
Technical Resistance and Broader Market Pressures
Despite the rebound, analysts said Nifty has to trade below 23,400 for further selling to take place in markets. Indian equities ended marginally higher on Wednesday, shrugging off weak global cues and Brent crude hovering near USD 102 a barrel, as selective buying in financials and oil & gas stocks offset broader caution,
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said. In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower, while Japan’s Nikkei 225 index settled in positive territory. Markets in Europe were trading on a mixed note. US markets in negative territory on Wednesday. Investors now await key US inflation data for cues on the rate trajectory,
Vinod Nair, Head of Research, Geojit Investments Ltd, said.
Macroeconomic Headwinds: Crude Prices and Geopolitical Tensions
Broader economic sentiment remained weighed down by external pressures, with elevated crude oil prices hovering above the USD 100-per-barrel mark amid persistent geopolitical tensions. Brent crude, the global oil benchmark, jumped 1.19 per cent to USD 102.2 per barrel.
The Indian stock market continued witnessing selling pressure for the third consecutive session on Wednesday, 9 September, tracking weak global cues. The Sensex dropped 813.35 points, or 1.08 per cent, to end at 74,764.23, while the NSE barometer Nifty 50 also dropped 203.60 points, or 0.86 per cent, to close at 23,431.50. In these three sessions, the Sensex has crashed 2.3 per cent, while the Nifty 50 has shed 2 per cent. On Wednesday, the Sensex tanked 813.35 points, or 1.08 per cent, to settle at 74,764.23, and the Nifty declined 203.60 points, or 0.86 per cent, to end at 23,431.50.
Crude oil prices have been on an uptrend, weighing on market sentiment. Brent crude trades near $100 per barrel, fuelling concerns over a potential inflation flare-up, monetary tightening, and distortion in India’s growth-inflation dynamics. India is the world’s third-largest oil-importing country. So, higher oil prices can inflate the country’s dollar-denominated import bill and can put pressure on the trade balance and the rupee. The rupee opened 5 paise lower at 94.87 against the US dollar on Wednesday.
Escalating US-Iran tensions are keeping investors on tenterhooks. According to Reuters, US forces struck multiple Iranian oil tankers linked to Iran’s Revolutionary Guard Corps (IRGC) in response to further attempted missile attacks on a US Navy warship. According to Al Jazeera, the US military said it has destroyed five Iranian crude oil carriers following the IRGC’s ballistic missile attacks on a US Navy warship. The US-Iran conflict has now stretched for over 6 months, and there is no resolution in sight in the near term. A prolonged period of conflict can keep oil prices higher for longer, impacting the country’s overall economic growth and the profitability of India Inc.
Experts believe the deluge of IPOs is sucking up liquidity that would otherwise go to the secondary market. On the BSE, as many as 146 IPOs have been launched this year. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 582.99 crore on Wednesday, according to exchange data.
