Sensex, Nifty slip as crude oil prices rise despite strong domestic buying

Indian benchmark indices experienced a mild intraday correction on Wednesday as elevated global crude oil prices and profit-taking pulled equity benchmarks down from early high points. The BSE Sensex fell 143.21 points, or 0.19 per cent, to close at 73,709.69, while the NSE Nifty 50 dropped 77.60 points, or 0.34 per cent, to end at 22,811.35.

The session began on a buoyant note, with the Sensex surging more than 800 points during early morning trade to reach an intraday peak of 74,682.19. Robust domestic institutional investment and positive expectations surrounding corporate earnings helped build early momentum. However, concerns over rising energy import costs prompted selective profit-booking across cyclical sectors as the day progressed.

Sectoral trends and market performance

Technology stocks remained a bright spot throughout the session, helping limit broader losses. The Nifty IT index climbed 2.88 per cent, driven by strong earnings visibility and renewed global interest in Indian IT services firms. By contrast, auto, banking and metal stocks faced selling pressure.

Among individual blue-chip stocks, Tech Mahindra advanced 3.21 per cent and Tata Consultancy Services rose 2.68 per cent. On the downside, Bajaj Finance declined 3.33 per cent, while Eternal dropped 2.71 per cent and Axis Bank shed 2.11 per cent.

Crude oil and global context

Rising international oil prices influenced market sentiment during afternoon trade. Brent crude increased 1.79 per cent to $110.74 a barrel, while US West Texas Intermediate crude rose 2.13 per cent to $99.93 a barrel. Higher global oil prices often impact broader import costs, though steady domestic macroeconomic parameters continue to bolster long-term market confidence.

India VIX, which tracks expected market volatility, rose 6.29 per cent to 15.70, reflecting short-term caution among derivative traders.

Geojit Investments head of research Vinod Nair said that resilient second-quarter earnings and robust domestic institutional flows remain fundamental pillars supporting Indian equities. He noted that near-term stability will depend on the continued breadth of earnings delivery, developments in foreign institutional flows, and stability in global commodity prices.