MUMBAI: The Indian equity markets posted notable losses early on Wednesday, weighed down by the US-Iran conflict and rising Brent crude prices.
Sensex lost 371 points, or 0.48 per cent, to reach 77,097 in morning trade while Nifty shed 106 points, or 0.44 per cent, to reach 24,081.
Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 lost 0.16 per cent, and the Nifty Smallcap 100 dipped 0.33 per cent.
Sectoral indices on NSE traded mostly in red, led by losses of Nifty pharma and mid small healthcare, down 0.99 per cent and 0.93 per cent, respectively, amid the fresh US phased tariff plan on generic drugs. Nifty PSU bank also logged strong losses, down 0.86 per cent.
Auto was the major gainer, up 0.79 per cent. FMCG, Metal and consumer gainers were the only other gainers, adding 0.09 to 0.15 per cent.
“The early automobile Q1 numbers are impressive, exports and management commentary reflect optimism. The price correction in a few leading banks is apparently over. Rupee is likely to remain stable buoyed by positive news on the dollar flows from FCNR deposits which has crossed $20 billion now. The inflows are likely to gather momentum, going forward,” an analyst said.
Weakening of the chip trade and sharp correction in markets like South Korea during the last one month are making India relatively stable and attractive from the valuation perspective, he added
In the previous session, the Nifty 50 extended its corrective phase for the second consecutive day, declining 0.2 per cent and closing below the 24,200 mark. The index largely traded within the previous session's range, reflecting indecisiveness among market participants, analysts noted.
The immediate support for Nifty is placed at 24,100, followed by 24,000 level. On the upside, the 24,300–24,400 zone remains a key hurdle for the bulls, market participants said.
Meanwhile, Asian markets traded higher in early deals, tracking technology-led gains on Wall Street as investors awaited earnings from major US technology companies.
In Asian markets, China's Shanghai index gained 0.35 per cent, and Shenzhen added 0.36 per cent, Japan's Nikkei advanced 1.93 per cent, and Hong Kong's Hang Seng Index eased 0.69 per cent. South Korea's Kospi added 4.31 per cent.
The US markets ended in green overnight as Nasdaq gained 1.29 per cent. The S&P 500 advanced 0.89 per cent, and the Dow Jones added 0.74 per cent.
On July 21, foreign institutional investors (FIIs) net bought equities worth Rs 1,650 crore, while domestic institutional investors (DIIs) net sold equities worth Rs 656 crore.
—IANS
