Indian benchmark indices Sensex and Nifty ended flat on Wednesday, as fresh tensions in West Asia dampened investor sentiment. The BSE Sensex slipped 12 points to close at 76,456, while the NSE Nifty edged down 4 points to 23,258. Weak trends in global markets and relentless foreign fund outflows kept investors cautious, according to analysts.
Metal and Oil & Gas Stocks Drag
Metal and oil & gas shares were the major drags on the indices, with the BSE Metal index falling 1.2% and the Nifty Oil & Gas index declining 0.8%. The rise in crude oil prices due to geopolitical uncertainties in West Asia weighed on oil marketing companies and metal firms. Geopolitical risks also led to profit-booking in other sectors.
Global Cues and FII Outflows
Global markets were mixed, with Asian peers trading lower amid escalating tensions in the Middle East. European markets opened on a cautious note. Meanwhile, foreign institutional investors (FIIs) continued to pull out funds from Indian equities, adding to the pressure. On Tuesday, FIIs sold shares worth Rs 1,200 crore, while domestic institutional investors bought Rs 900 crore worth of equities.
Analysts said that the market is in a consolidation phase, with no major triggers in the near term. They advised investors to remain cautious and focus on stock-specific moves. The broader market also witnessed selling, with the BSE Midcap index falling 0.3% and the Smallcap index declining 0.2%.
Among sectoral indices, IT and banking stocks managed to hold ground, providing some support to the benchmarks. The Nifty Bank index rose 0.1%, while the Nifty IT index gained 0.3%. However, the overall sentiment remained subdued due to the external headwinds.
Market participants are now awaiting the release of key economic data, including industrial production and inflation figures, for further direction. The ongoing monsoon session of Parliament and global cues will also be closely watched.
