MUMBAI, May 19 (ANI): Domestic equity markets closed marginally lower on Tuesday as investor sentiment remained cautious amid concerns over inflationary pressures, elevated crude oil prices, and geopolitical tensions in West Asia.
The NIFTY 50 closed at 23,618, down 31.95 points or 0.14 percent, while the BSE Sensex ended at 75,200.85, declining 114.19 points or 0.15 percent.
Market experts said initial optimism faded later in the session despite reports that the United States had temporarily delayed plans for military action against Iran.
Vinod Nair, Head of Research at Geojit Investments, said domestic equity indices erased early gains and ended lower despite positive global cues.
“Domestic equity indices pared early gains to close in the red, despite an initial upswing fueled by optimism surrounding a temporary halt in U.S. military operations against Iran,” he said.
Nair added that information technology stocks outperformed the broader market due to expectations of gains from a weakening rupee and attractive valuations.
According to him, mid-cap and small-cap stocks also performed better than large-cap stocks after recent corrections.
He further noted that while fourth-quarter earnings reflected resilience in the domestic economy, investors remain concerned about inflation risks and possible earnings downgrades in the coming quarters.
Vikram Kasat, Head Advisory at PL Capital, said markets experienced a relief-driven session supported by improved investor risk appetite after reports suggested the United States had paused plans to strike Iran.
He added that easing crude oil prices also supported market sentiment by reducing concerns over inflation and India’s import bill.
“Yet the sentiments were still cautious in the backdrop of geopolitical events and movements in oil prices,” Kasat said.
Among sectoral indices, Nifty IT emerged as the top gainer, rising 3.23 percent. Nifty Realty gained 1.43 percent, while Nifty PSU Bank advanced 0.81 percent. Nifty Consumer Durables rose 0.44 percent, Nifty Pharma gained 0.42 percent, and Nifty Auto closed 0.29 percent higher. The Oil and Gas index also ended with gains of 0.16 percent.
On the losing side, Nifty Private Bank declined 0.74 percent, Nifty Metal slipped 0.05 percent, and Nifty FMCG ended marginally lower by 0.03 percent.
Brent crude prices moderated slightly but remained elevated at around USD 109 per barrel, down 2 percent at the time of reporting.
Gold prices rose 0.26 percent to Rs 159,876 per 10 grams for 24-karat gold, while silver prices stood at Rs 273,954 per kilogram.
Asian markets showed mixed performance during the session. Japan’s Nikkei 225 fell 0.66 percent, Taiwan’s weighted index declined 1.78 percent, and South Korea’s KOSPI dropped 3.36 percent.
Meanwhile, Singapore’s Straits Times Index gained 1.51 percent, while Hong Kong’s Hang Seng Index rose 0.46 percent. (ANI)
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